UK Issues New Sanctions FAQ Related to Russia's NSD
The U.K.'s Office of Financial Sanctions Implementation issued new FAQ 172 on Oct. 31 to address whether licenses are required for certain dealings related to Russia's sanctioned National Settlement Depository (NSD). The FAQ specifically addresses a situation in which funds are allocated to the U.K. entity by an "International Central Securities Depository," but Russia's NSD has seized International Central Securities Depository funds held at the NSD. The U.K. said an OFSI license wouldn't be required by a U.K. financial institution to deal with or receive those funds as long as:
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- The NSD has no ownership or control over the funds.
- The funds aren't "being made available to, or for the benefit of," sanctioned persons by the U.K. financial institution.
- No other financial sanctions are "engaged."
"OFSI cannot comment on whether licences from other jurisdictions may be required in this scenario," the agency said.