Australia
Contravening a sanctions measure or permit is punishable for individuals by up to 10 years in prison and/or a fine (as from 1 July 2023) of the greater of $782,500 or three times the value of the transaction, and for corporations, a fine the greater of $3.13m or three times the value of the transaction.
Giving false or misleading information in connection with the administration of a sanction law is punishable by up to 10 years in prison and/or a fine (as from 1 July 2023) of $782,500.
In R v BB [2019] NSWSC 1054, the NSW Supreme Court held that for prosecutions under the AS Laws, the prosecutor must establish: (1) an offender intended to make a supply; (2) with knowledge of the goods and what they consisted of (relevant to any classification of the goods); (3) with knowledge that the direct or indirect supply was to transfer goods to a designated jurisdiction (Iran); and (4) the offender was reckless as to whether the supply was of sanctioned goods or was not authorised under the AS Laws.
In R v AA (No 3) [2019] NSWSC 1892, Ms AA (a pseudonym) was sentenced to imprisonment for a fixed term of two years, to be served by way of an intensive correction order in the community for providing sanctioned goods and/or services to Iranian entities through the use of third party intermediaries.
In R v Choi (No 10) [2021] NSWSC 891, Mr Choi was sentenced to imprisonment for a fixed term of three years and six months for providing sanctioned services to North Korean entities.
Bermuda
The Financial Sanctions Implementation Unit (FSIU) is a unit in the Ministry of Legal Affairs Headquarters, which is responsible for conducting certain functions on behalf of the Minister, with respect to the implementation of targeted financial sanctions for terrorism, terrorist financing and proliferation financing in Bermuda.
One of the FSIU’s functions is to monitor compliance and enforcement. It can refer cases to law enforcement agencies where necessary.
Under s 5 of the Proceeds of Crime Regulations (Supervisions and Enforcement) Act 2008, a supervisory authority is responsible for monitoring and ensuring compliance with the AML/ ATF Regulations by persons and financial groups. The AML/ ATF Regulations means the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, and any subsequent regulations made under section 49(3) of the Proceeds of Crime Act 1997 or section 12A of the Anti-Terrorism (Financial and other Measures) Act 2004.
Under s 20, the supervisory authority can issue civil penalties for breaches of obligations under Bermuda’s sanctions regime. Maximum penalties are:
- $10m for BMA-supervised people/entities
- $250k for people/entities supervised by the Registrar
- $250k for people/entities supervised by the Superintendent of Real Estate.
If convicted of an offence under the United Kingdom Overseas Territory Orders in Council (OT Orders), the offender may receive a term of imprisonment of up to seven years or a fine or both; and on summary conviction, imprisonment for a maximum of 6 months or to a fine not exceeding £5,000.00 or its Bermuda dollar equivalent or both. See FSIU Guidance.
British Virgin Islands
The Governor has overall responsibility for enforcing SAMLA and Orders in Council, as well as ensuring compliance by relevant entities. As supervisory authorities, the FIA and the FSC are tasked with overseeing the compliance of institutions, businesses, and professions under their supervision, ensuring adherence to the Anti-Money Laundering and Terrorist Financing Code of Practice (AMLTFCOP) and other relevant legislation.
The FIA is required to monitor compliance with anti-terrorism and anti-proliferation financing regulations under the Proceeds of Criminal Conduct Act (PCCA) and the Financial Investigation Agency Act 2023. The PCCA grants the FSC and the FIA the authority to impose administrative penalties for non-compliance with the provisions of the AMLTFCOP, including breaches of targeted financial sanctions and/or failure to submit reports in the correct format.
When determining the course of action in a breach of financial sanctions, the FIA and FSC will consider the following factors:
- whether the breach was fully and promptly self-disclosed;
- the degree of cooperation within any inquiries; and
- any remedial actions taken to improve future compliance.
The decision to pursue a criminal prosecution for breaches of financial sanctions lies with the FCU within the Royal Virgin Islands Police Force and the Office of the Director of Public Prosecutions.
Canada
The Minister of Foreign Affairs, with the assistance of other government departments, is responsible for the administration and enforcement of the SEMA. The Commissioner of the Royal Canadian Mounted Police may also assist the Minister of Foreign Affairs in matters related to orders regarding the seizure or restraint of property, or the making of an application for forfeiture under the SEMA.
Contravening sanctions is a criminal offence. The Royal Canadian Mounter Police and the Canada Border Services Agency are responsible to investigate and enforce offences under the United Nations Act, the SEMA, and the Justice for Victims of Corrupt Foreign Officials Act.
Under the United Nations Act, the maximum penalty on summary conviction is a $100,000 fine or a 1-year prison term, or both. Convictions on indictment may result in a maximum 10-year prison term.
Under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act, the maximum penalty on summary conviction is a $25,000 fine or a 1-year prison term, or both. Conviction on indictment may result in a maximum 5-year prison term.
Separate penalties are imposed for contraventions of the Criminal Code, the Freezing Assets of Corrupt Foreign Officials Act, and the Export and Import Permits Act. Notably, a person or organization that contravenes any provision of the Export and Import Permits Act or any regulation enacted pursuant to the Act is guilty of
- an offence punishable on summary conviction and liable to a fine not exceeding $250,000 or to imprisonment for a term not exceeding 12 months, or to both; or
- an indictable offence and liable to a fine in an amount that is in the discretion of the court or to imprisonment for a term not exceeding 10 years, or to both.
Recent amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (“PCMLTFA”) and its regulations expanded the reporting obligations for “reporting entities” to include an obligation to report suspicious completed or attempted transactions to the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) if there are reasonable grounds to suspect that a financial transaction in the course of their activities is related to the commission or the attempted commission of sanctions evasion. Failure to report such transactions may result in fines up to $2,000,000 and/or five years imprisonment.
Gibraltar
The Gibraltar Chief Minister monitors compliance with financial sanctions. The Chief Minister also has the power to refer cases to law enforcement agencies for investigation and prosecution. Breaches of financial sanctions are criminal offences that can result in custodial sentences or monetary penalties. The maximum term of imprisonment of conviction on indictment is 10 years. There is no maximum fine.
Gibraltar autonomous sanctions regulations can make provisions for enforcement, including creating criminal offences for sanctions circumvention. Regulations may not provide for an offence to be punishable with imprisonment for a period exceeding (a) in the case of conviction on indictment, 10 years; (b) in the case of summary conviction, 12 months.
Screening Obligations
Under s. 8A of the Sanctions Act 2019, those involved in financial businesses must have adequate screening measures in place. Failure to comply with this requirement can, under s17 of the Supervisory Bodies (Sanctions) (Enforcement) Regulations 2025, result in:
- for firms that are not credit/financial institutions penalties amounting to 2x the amount of benefit derived from the breach (where the breach can be determined); or €1m
- for firms that are credit/financial institutions:
- entities – a penalty of €5m or 10% of the annual turnover according to the latest accounts
- individuals – a penalty of €5m
The following supervisory bodies are responsible for supervising and enforcing compliance with screening obligations:
- Financial Services Commission
- the Commissioner of Banking and the Banking Supervisor
- the Commissioner of Insurance and the Insurance Supervisor
- the Financial Secretary
- the Gambling Commissioner as defined in section 2 of the Gambling Act 2005
- the Office of Fair Trading
- HM Customs
- the Legal Services Regulatory Authority
Guernsey
In general terms, breach of sanctions in Guernsey is a criminal offence.
Guernsey does not have the power to issue civil penalties for breach of sanctions.
Japan
Sanctions violations are a criminal offence in Japan. Japan’s police and public prosecutors are responsible for enforcement.
Breaches of financial sanctions are punishable under Article 70 of the Foreign Exchange and Foreign Trade Act 1949 with:
- imprisonment of up to 3 years, and/or
- a fine of up to 1m yen (unless three times the value of the subject matter of the violation exceeds 1m yen, the fine is up to three times that value)
Breaches of trade sanctions are punishable under Article 69-7 of the Foreign Exchange and Foreign Trade Act 1949 with:
- imprisonment of up to 5 years, and/or
- a fine of up to 10m yen (unless five times the value of the subject matter of the violation exceeds 10m yen, the fine is up to five times that value)
However, if a competent minister has made it obligatory to obtain permission for a transaction and a person/entity has been involved in such a transaction without permission, the Minister can prohibit that person/entity from such transactions for up to a year.
If a person/entity breaches trade sanctions/export controls, the Ministry of Economy, Trade and Industry can under Article 53 of the Foreign Exchange and Foreign Trade Act ban that person/entity from importing or exporting goods into/out of Japan for up to a year (3 years in the case of breaches of autonomous trade sanctions).
New Zealand
UN Sanctions Regime
A breach of the UN sanctions regime results in criminal, not civil, consequences.
The sanctions regulations specify that a person who contravenes or fails to comply with any provision of the regulation commits a criminal offence.
The United Nations Act then states that a person who “commits, or attempts to commit, or does any act with intent to commit, or counsels, procures, aids, abets, or incites any other person to commit, or conspires with any other person (whether in New Zealand or elsewhere) to commit any offence against any regulations made under this Act” shall be liable on conviction:
- For a term of imprisonment not exceeding 12 months or a fine not exceeding $10,000 for an individual.
- For a fine not exceeding $100,000 for a company.
There has been only one prosecution for non-compliance with UN sanctions regulations in New Zealand. Pacific Aerospace Limited supplied aircraft parts to an entity, on three occasions, knowing that these parts would be sent to repair aircraft based in the DPRK. Pacific Aerospace pleaded guilty to three charges of indirectly exporting a specified good to DPRK. It was fined NZ$35,000 on each of the charges. In sentencing, the Court described the breach as “reckless”, given that Pacific Aerospace was aware generally of the sanctions regulations but had chosen not to fully inform itself of their detail.
Russia Sanctions Regime
A breach of the Russia sanctions regime can have civil and criminal consequences. However, a financial penalty can only be imposed in the event of a criminal breach.
Civil consequences: Breaching a sanction without reasonable excuse can result in the Attorney General issuing a formal warning, requiring an enforceable undertaking, or seeking an injunction to restrain the breach. The Attorney-General does not have a power to seek a pecuniary penalty.
Criminal consequences: Knowingly or recklessly breaching a sanction is an offence punishable by up to 7 years’ imprisonment or a $100,000 fine for an individual, and a fine of up to $1 million for a company. “Knowledge” or “recklessness” involves a relatively significant level of misconduct. That is, a conscious appreciation that certain conduct was in breach of a sanction or risked breaching a sanction.
Terrorism Suppression Act
Breaches of the Terrorism Suppression Act in respect of dealing with property in relation to a designated terrorist entity and funding terrorism are criminal offences. Penalties include:
- Funding terrorism: term of imprisonment not exceeding 10 years where there is knowledge or recklessness, and 14 years where there is intent.
- Dealing with property: term of imprisonment not exceeding 7 years.
- Making property, or material support, available: term of imprisonment not exceeding 10 years.
Singapore
Under the Financial Services and Markets Act 2022, a financial institution that contravenes any FSM Regulations may be subject to a fine not exceeding $1 million.
Under the UN Act 2001, an individual who commits an offence under any Regulations made under the UN Act may be liable to a fine not exceeding $500,000 or to imprisonment for a term not exceeding 10 years or to both and an entity may be liable to a fine of up to $1 million.
Taiwan
Under Article 10 of the CFT Act, a person who directly or indirectly collects or provides any property or property interests for another person in the knowledge that the other person is a designated person/entity can be sentenced to between 6 months and 5 years imprisonment and a fine of up to NT$5m. Under Article 11, where it is a company’s representative/employee that has committed the offence (during the performance of their role), then the company is liable to the same maximum fine. The penalty can be waived if disclosed within 6 months.
Ukraine
Ukraine may seize frozen assets pursuant to 3 mechanisms:
- Law on Improving the Effectiveness of Sanctions on the Assets of Individuals No. 7194:
Under this law, after the President has adopted a sanctions decree against an individual or entity, the Ministry of Justice then prepares a statement to the High Anti-Corruption Court of Ukraine (HACC) requesting confiscation of assets. The HACC then considers the application and makes a decision (which can be appealed). If the HACC decides that there should be confiscation, and the appeal fails or no appeal is made, then such assets are transferred to the management of the State Property Fund of Ukraine (SPFU).
- Law on Forced Seizure of Property of Russia and Its Residents No. 2116-IX:
Under this law, the Cabinet of Ministers prepares a draft decision on the asset seizure for the NSDC to consider. The President must then sign a decree which, no later than 6 months from the date of the end of martial law, must be approved by the Ukrainian Parliament. The assets are then transferred for management by the Deposit Guarantee Fund of the Ministry of Finance.
- Confiscation within the framework of criminal proceedings
Assets may be confiscated following a criminal prosecution and transferred to the Asset Recovery Management Agency.
United Arab Emirates
Any person, found to violate and/or be in non-compliance with the obligation in Cabinet Resolution No. 74 of 2020 or failing to implement procedures to ensure compliance may face imprisonment of no less than 1 year and no more than 7 years and/or a fine of no less than AED 50,000 and no more than AED 5,000,000.
Supervisory authorities can impose appropriate administrative sanctions, including warning letters and license cancellations, when there is a violation or shortcoming in implementing sanctions obligations.
Individuals and entities are exempt from liability resulting from freezing funds if they in good faith believe that the freezing was necessary for the purpose of complying with Cabinet Resolution No 74, even if it later turns out that the freezing was not required by the Resolution.