The OFSI, part of the Treasury, has published guidance for charities and non-governmental organisations (NGOs) delivering humanitarian aid in some of the world’s most challenging regions, to help ensure compliance with financial sanctions.

The move was prompted by requests, especially from smaller charities, asking for clearer information on issues affecting the sector so they could ensure they complied.

Michelle Russell, director of investigations, monitoring and enforcement at the Charity Commission, said: ‘Some charities weren’t aware that it is illegal to receive money, goods or economic resources from – or send these to – an individual or organisation subject to financial sanctions unless they have a licence or an exemption applies.

‘Others found it challenging to navigate the rules about this.’

The guidance explains that charities and NGOs do not need a licence for most humanitarian work. However, they do need a licence if, for instance, they are dealing – directly or indirectly – with a sanctioned individual or organisation in a way that is prohibited under the relevant financial sanctions regulations; purchasing or transporting fuel in Syria in certain circumstances; or sending funds or providing goods or services to North Korea.

New financial sanctions regimes can be introduced at any time and existing ones are subject to change. The new guidance helps clarify what activity may be permitted under an OFSI licence and how to apply. It also promotes various sources of information and advice available to charities and NGOs, including OFSI’s email and telephone enquiry service and the Charity Commission’s toolkit for charities and NGOs.

Financial sanctions: guidance, FAQs and information on monetary penalties

Report by Pat Sweet