British law firm fined for violating sanctions against russia

HSF moscow has made six payments totaling just under £4 million to sanctioned individuals whose assets are subject to freezing. The Office for the Financial Sanctions Implementation (OFSI) said the payments, which were made over a seven-day period, demonstrated a “pattern of errors” in the firm's operations.

The subsidiary Herbert Smith Freehills was closed on May 31, 2022, after russia's full-scale invasion of Ukraine. The payments were made in connection with the curtailment of the firm's activities in russia.

Herbert Smith Freehills reported the violation to OFSI on behalf of HSF moscow and was therefore entitled to a 50% discount on the fine.

This is one of the largest fines imposed by OFSI to date. Politicians and civil society have frequently criticized the Ministry of Finance's watchdog for failing to impose any fines since russia's invasion of Ukraine.

Economic Secretary to the Treasury Emma Reynolds said that Britain's commitment to enforcing sanctions is “unwavering.”

“A just and lasting peace in Ukraine must be our priority, and the UK's financial sanctions continue to play an important role in disrupting the russian war machine and putting Ukraine on the strongest possible footing,” she added.

Source: Politico