Charities have sanctions compliance obligations to ensure they do not inadvertently fund or support prohibited individuals, entities, or activities under international and domestic sanctions regimes.
Several sanctions regimes make provisions for charities to continue operating in regions affected by sanctions, through humanitarian exemptions or licensing. Guidance is available to help charities understand their compliance obligations.
In December 2022, the United Nations Security Council adopted Resolution 2664/2022, which created a humanitarian exemption applicable across UN sanctions regimes.
Under Resolution 2664, the provision, processing or payment of funds, other financial assets or economic resources or the provision of goods and services necessary to ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs, does not violate asset freeze measures imposed by the Security Council or its sanctions committees The humanitarian assistance/activity must be carried out by:
The humanitarian exemption is a “standing exemption”, neither approval nor notification are required to rely upon the exemption. However, the exemption only applies to financial sanctions. Authorisations are therefore required for the provision of humanitarian assistance that could violate other restrictions.
The humanitarian exemption is distinct from humanitarian derogations/licences. Exemptions mean that a restriction does not apply when the purpose of the action coincides with the scope of the exemption. When a humanitarian activity falls within the scope of an exemption, a humanitarian operator may carry out the exempted activity without any prior authorisation. Humanitarian operators must later be able to demonstrate the activity complied with the exemption conditions. Derogations/exceptions/licences mean that a restricted action can be carried out only after the National Competent Authority has granted an authorisation (licence).
In February 2023, the EU introduced the UN exemption to its Somalia, CAR, Yemen, Haiti, Iraq and Lebanon (assassination of former Prime Minister Rafiq Hariri) sanctions regimes (the EU’s 6 UN-based sanctions regimes). In March 2023, the EU implemented the humanitarian exemption in its Iran, DRC, Sudan, South Sudan, Libya, North Korea, Terrorism and Mali sanctions regimes (the EU’s UN/EU mixed sanctions regimes).
‘Humanitarian Derogations’ are derogations for the provision of humanitarian aid under Council regulations establishing autonomous EU sanctions pursuant to Article 215 of the Treaty on the Functioning of the European Union.
Several EU sanctions regimes provide that Member States national competent authorities (NCA) may grant Humanitarian Derogations under terms and conditions that the NCA deems appropriate.
Most EU sanctions regulations contain provisions for Humanitarian Derogations, including the EU’s Afghanistan, Syria, and Human Rights regimes.
In February 2024, the UK adopted the Sanctions (Humanitarian Exception) (Amendment) Regulations 2023, which implements the UN humanitarian exemption and applies it to all the UK’s UN-based sanctions regimes.
In September 2024, the UK government confirmed that the UN humanitarian exemption (adopted by Resolution 2664(2022)) applies to the UK’s 7 UN-based sanctions regimes; and 12 mixed UN-UK autonomous sanctions regimes. Unlike the US, the UK has not yet implemented the UN humanitarian exemption into its autonomous sanctions regimes. There have been calls for it to do so.
Certain UK autonomous sanctions regimes contain their own humanitarian exceptions to sanctions. For example, in the Russia Sanctions Regs Reg 60E, certain trade restrictions on maritime goods and maritime technology do not apply to the sale/supply/transfer/or export of such goods or technology when for the purpose of humanitarian assistance activity. “Humanitarian assistance activity” in that circumstance includes the work of international and non-governmental organisations carrying out relief activities for the benefit of the civilian population of a country.
The UK has created general licences that create humanitarian exceptions to UK sanctions, for example General Licence INT/2025/5810196, which allows for payments to be made in respect of relevant humanitarian assistance activities in Syria. Like the EU humanitarian derogations, these are distinct from the UN exemption in that they require prior authorisation to be relied upon.
Humanitarian operators should note, some humanitarian exceptions only apply to certain organisations, UN bodies or UK-funded people/entities. For example, General Licence INT/2023/3749168, “Israel, the Occupied Palestinian Territories and Lebanon humanitarian activity” authorises humanitarian activities when carried out by certain listed entities, the UN or ‘any UK funded person’.
Humanitarian assistance activity is one of the licensing grounds that OFSI will consider when granting licence applications (see UK Licensing). Licences can be obtained from OFSI if an activity is prohibited under a financial sanctions regime, and there is no relevant exception. Applications under this licensing ground are treated as high priority.
Licences under this ground enable payments to facilitate:
Humanitarian assistance includes the work of international and non-governmental organisations carrying out relief activities for the benefit of the applicable civilian population, which may include the delivery of humanitarian aid or peace-building programmes. A licence may still be required even if this activity is using government funds.
Independent Reviewer of Terrorism Legislation discussion of humanitarian organisations and terrorism sanctions
In December 2022, in order to implement the UN’s humanitarian exemption, the US issued and amended general licences that authorise US humanitarian activities in 4 categories:
UN Resolution 2664 (2022), humanitarian exemption to all asset freeze measures imposed by United Nations sanctions regimes.
The Sanctions (Humanitarian Exception) (Amendment) Regulations 2023
