OFSI Annual Reviews

The Office of Financial Sanctions Implementation (OFSI) has published its Annual Review 2022-23 which provides a comprehensive overview of the significant developments and achievements in the use of financial sanctions at both global and UK levels during 2022/2023 – which the review titles „a historic and transformative period“. The review underscores the critical role of financial sanctions in addressing threats to UK and global security, particularly in the context of Russia’s invasion of Ukraine.
The review thereby focuses on the implementation and enforcement of sanctions, highlighting the improved management of unintended consequences and the transition to a proactive enforcement model. This shift indicates a more strategic and responsive approach to financial sanctions, with a greater emphasis on preventing and mitigating potential negative impacts. Furthermore, the review discusses the partnership between the UK’s Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), emphasizing the importance of international cooperation in effectively implementing and enforcing financial sanctions.
A further notable theme in the review is OFSI’s ongoing role in mitigating and responding to threats to UK security and prosperity. This includes not only the enforcement of financial sanctions, but also efforts to ensure that these measures are proportionate and targeted, minimizing disruption to legitimate economic activities.
Finally, the review presents some fundamental statistics as regards sanction measures and OFSI engagements in 2022/2023, including the following:
– OFSI has now established 35 sanction regimes.
– OFSI froze Russian assets worth £22.7 billion between February 2022 and October 2023.
– OFSI pronounced 7 cyber-related designations.
– OFSI issued a total of 283 specific and 28 general licenses so as to reduce economic disruptions where appropriate and legitimate.
– OFSI heavily engaged with international regulators to foster harmonization of international sanction efforts (over 300 engagements).
– OFSI engaged in 51 industry events, including webinars, teach-ins, and stakeholder meetings to strengthen capabilities among market participants and raise awareness of financial sanctions and their consequences.