Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, with reference to page 33 of the National Security Strategy 2025, published on 24 June 2025, what progress he has made in strengthening the UK’s sanctions (a) implementation and (b) enforcement through the Economic Deterrence Initiative.

The Government concluded a review of the implementation and enforcement of UK sanctions in April 2025. Following the review, this Government is committing to do more to make compliance easier for UK industry, to deter non-compliance and to make sure we have the right powers and capabilities to enforce sanctions breaches.

The Economic Deterrence Initiative has underpinned this review by funding activity across government to improve implementation and enforcement of sanctions. This includes establishing new HMG capabilities like the Office of Trade Sanctions Implementation (OTSI), enhanced guidance and licensing capability to support legitimate business, tackling sanctions circumvention with international partners, and bolstering sanctions implementation in the Overseas Territories.

His Majesty's Revenue and Customs (HMRC) recently concluded a compound settlement to a UK business that breached UK sanctions. The settlement involved a penalty of £1.1 million which was paid to HMRC in May 2025. This is the largest compound settlement HMRC has concluded for a Russia sanctions offence.

In March 2025, the Office of Financial Sanctions Implementation (OFSI) imposed a monetary penalty of £465,000 for breaches of Financial Sanctions, and in April the National Crime Agency (NCA) secured the first convictions for breaches of the UK's Russia sanctions.