On 30 May 2023, the UK Office of Financial Sanctions Implementation (OFSI) published a blog post, aiming to provide clarity on issues relating to trust services sanctions. Effective from 16 December 2022, trust services sanctions are financial measures managed by the OFSI.

These trust services measures restrict the access of individuals designated under this measure and those associated with Russia from utilising the UK's trust services. OFSI has engaged with over 500 stakeholders and international partners, including Crown Dependencies and Overseas Territories.

The trust services sanctions apply in the following cases:

• Persons connected with Russia (PCWR): Since 16 December 2022, it is prohibited to provide new trust services to or for the benefit of PCWR. The legal definition of PCWR can be found in section 19A(2) of the Russia (Sanctions) (EU Exit) Regulations 2019. The definition should be assessed on a case-by-case basis, considering factors such as residency and domicile.
• Designated persons: Trust services must not be provided to or for the benefit of individuals designated under these sanctions. Trust services need to be wound down unless a relevant exception applies or a specific license is obtained. The definition of "for the benefit of" is provided in sections 18C(5) and 18C(6), here. OFSI's consolidated list contains details of designated persons and can be found here.

The trust services prohibitions apply to UK persons providing services anywhere, or persons in the UK providing services to or for the benefit of PCWR and designated persons. These measures also apply in the Crown Dependencies and Overseas Territories, although they may have issued their own General Licenses.

Key exceptions:

• Acts done for compliance with asset freeze obligations
• Trust services provided for registered pension schemes, not primarily benefiting designated persons or PCWR

OFSI has the authority to impose civil monetary penalties without the need to prove knowledge or reasonable cause to suspect a breach of financial sanctions.

The General Licence applies to designated persons under trust services sanctions but not to PCWR. Reporting obligations exist for winding down trust services. If a specific licence is required, guidance should be followed, and applications should be submitted promptly. Trust and company service providers unable to wind down services within the provided timeframe should contact OFSI promptly. The General Licence can be accessed here.

OFSI’s blog post can be found here.

Section 19A(2) of the Russia (Sanctions) (EU Exit) Regulations 2019 can be found here.

Our recent blog post on the UK’s trust services sanctions against Russia and the BVI and Bermuda General Licences issued can be found here.

Our ongoing blog post on the various packages of UK sanctions on Russia can be found here.