British law firm Herbert Smith Freehills has been fined nearly $604 000 for violating sanctions against Russia. Its Russian office in Moscow transferred nearly $5.1 million to people who were subject to sanctions and had their assets frozen.
The UKʼs Office for Financial Sanctions Implementation (OFSI) said the payments took place over a week, indicating serious and systemic violations.
Herbert Smith Freehills closed its Moscow office on May 31, 2022. It made payments when it wound down its operations in Russia.
Since Herbert Smith Freehills itself reported the sanctions violation to the Office on behalf of the Moscow branch, the fine for the company was reduced by 50%.
This is one of the largest fines ever imposed by the Office. The regulator, which reports to the UK Treasury, has often been criticized for its lack of fines since Russia began a full-scale war against Ukraine.
UK Finance Minister Emma Reynolds stressed that the country takes sanctions seriously, and that sanctions help weaken the Kremlinʼs military machine and support Ukraine.
- The UK has been imposing sanctions on Russia in response to its full-scale war against Ukraine. They target individuals, the military-industrial sector, banks, a shadow fleet, Russian oil, and more.
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