UK Sanctions Agency to Begin Rejecting Incomplete License Applications
The U.K.'s Office of Financial Sanctions Implementation will begin rejecting incomplete license applications instead of “engaging” with applicants to collect all required information, the agency announced last week. OFSI said its licensing team has experienced “unprecedented high demand” caused by its Russia sanctions, including a surge in new applications and requests to amend existing licenses, and it doesn’t have the time to continue a temporary measure under which it worked with applicants to fix missing information.
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“To reduce delays and ensure a timely service can be provided for all applicants, OFSI will be ending this temporary measure and will resume returning applications which are not complete at the time of receipt,” the agency said.
OFSI said it has received incomplete applications with “key information” missing, such as an “adequate explanation as to why the licensing purpose applies.” The agency said applicants can reapply after having their application returned, but OFSI will treat their next submission as a “new application and will not be prioritised purely because it has been resubmitted.”
Applicants should make sure to “fully complete” the application form and read OFSI’s guidance on submitting license applications. They should also check whether the transaction is already authorized under a specific general license, OFSI said, and be ready to provide information about which sanctions regime relates to their application and whether there is a “legal basis” for the license to be issued. If an applicant is looking to use OFSI’s “extraordinary situations licensing purpose,” the agency said, it needs to “demonstrate that their case is extraordinary in nature,” including that it’s “unexpected, unavoidable and not recurring.”
The applicant also needs to ensure the transaction has a U.K. connection, the agency said. “[W]hat is the UK link in an applicant’s case?” the agency said. “OFSI can only issue licences where there is a UK nexus. For example, are the frozen assets located in the UK? Are UK Persons involved in the transaction?”
Applicants can help ensure their licenses are reviewed by providing evidence “wherever possible, such as bills or invoices,” and making sure OFSI can access any documents that accompany the applications. If the applicant doesn’t have evidence, it should explain why, OFSI said. Applicants also should be aware that OFSI only deals with financial sanctions-related licenses, and other license applications should be submitted to the “relevant department.”
OFSI added that it will “continue to assist applicants who contact us to understand the licensing process as well as our evidentiary requirements. However, we cannot provide legal advice and applicants should consider taking independent legal advice before applying, especially for complicated matters.”