UK Fines Company for Russia Sanctions Violations
The U.K.'s Office of Financial Sanctions Implementation this week fined Markom Management Limited 300,000 pounds (about $400,000) for violating sanctions against Russia.
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OFSI said Markom was involved in an illegal 416,590.92 pound (about $550,000) payment to a person designated under the U.K.'s Russia sanctions regime. Markom "gave instructions to make the payment from another company’s bank account with the knowledge that the recipient was a designated person, having failed to put in place adequate compliance and controls procedures," the agency said.
OFSI said the penalty highlights the importance of companies understanding and addressing their exposure to sanctions risks; having "adequate sanctions processes to ensure compliance," including by promptly reporting suspected violations to OFSI; and being "alert to the risks of making payments in haste." The U.K. will "continue to prioritise sanctions enforcement, through public actions, such as monetary penalties, as well as actions which are not made public, such as warning letters and referrals to partner agencies and regulators," it said.
Markom Management Limited couldn't be reached for comment.
OFSI added that it's still accepting public comments on how it should improve its civil enforcement of financial sanctions (see 2507220056). Some proposals could double penalty amounts for the "worst sanctions breaches" and speed up resolutions in certain cases.