A Russian subsidiary of British law firm Herbert Smith Freehills has been fined £465,000 by Britain’s sanctions watchdog for breaching Russian sanctions.
HSF Moscow made six payments of just under £4 million to sanctioned individuals who were subject to an asset freeze. The Office of Financial Sanctions Implementation (OFSI) said the payments, which took place over seven days, demonstrated a “pattern of failings” by the firm.
The subsidiary was closed by Herbert Smith Freehills on May 31, 2022, after Russia’s full-scale invasion of Ukraine in February. The payments were made as the firm was winding down its Russian operations.
Herbert Smith Freehills informed OFSI of the breach on behalf of HSF Moscow, so was entitled to a 50 percent reduction in the fine.
The penalty is one of the biggest issued by OFSI to date. The watchdog — which sits in the Treasury — was frequently criticized by politicians and civil society for its failure to issue any fines in the aftermath of Russia’s invasion of Ukraine.
City Minister Emma Reynolds said Britain’s commitment to enforcing sanctions is “steadfast.” She added: “A just and lasting peace in Ukraine must be our priority, and UK financial sanctions continue to be essential to disrupting Russia’s war machine and putting Ukraine on the strongest footing possible.”
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