Overview

• Herbert Smith Freehills (HSF) was fined £465,000 by the UK’s Office of Financial Sanctions Implementation (OFSI) for violating sanctions on Russia.
• The breaches involved six payments totaling nearly £4 million to sanctioned banks, including Sovcombank, Sberbank, and Alfa-Bank, in May 2022.
• The payments occurred during the final week of winding down the firm’s Moscow office, with errors attributed to procedural lapses and time constraints.
• HSF’s voluntary disclosure of the breaches resulted in a 50% reduction of the original £930,000 fine.
• UK officials emphasized the importance of enforcing financial sanctions to disrupt Russia’s war efforts and support Ukraine.