Question to the Home Office:

To ask the Secretary of State for the Home Department, what steps he is taking to (a) identify and (b) prosecute sanctions evasion.

HMG is committed to investing in its sanction’s policy and enforcement architecture. In recognition of the centrality of sanctions, the FCDO established a permanent Sanctions Directorate in 2022 with over 120 permanent staff delivering its response. In addition, we have strengthened financial sanctions enforcement capacity and capability. OFSI has significantly increased its staffing from 40 FTE in February 2022 to over 100.

On 13 March 2023, the Prime Minister announced a new Economic Deterrence Initiative (EDI) which will tackle sanctions evasion across the UK’s trade, transport and financial sanctions. The initiative will be a cross-government effort, led by FCDO and involving a range of Departments and agencies including DBT, HMT and DFT, as well as HMRC and NCA.

With funding of up to £50m over two years, the initiative will improve our sanctions implementation and enforcement. This will maximise the impact of our trade, transport and financial sanctions, including by cracking down on sanctions evasion.

The Economic Crime and Corporate Transparency Act 2023 brought powers to provide for the civil forfeiture of cyrptoassets and can be used as a tool to prevent cryptoassets being used as vector for sanctions evasion.

Finally, a new kleptocracy cell in the NCA has been established to target sanctions evasion and corrupt Russian assets hidden in the UK – meaning oligarchs in London will have nowhere to hide.