UK Fines HSF £465K for Sanctions Breach

Herbert Smith Freehills (HSF), a prominent international law firm, has been fined £465,000 by the UK's Office of Financial Sanctions Implementation (OFSI) for violations of sanctions against Russia. The breaches involved HSF's Moscow subsidiary, which made six payments totaling nearly £4 million to sanctioned Russian banks, including Alfa-Bank, PJSC Sovcombank, and PJSC Sberbank, following Russia's invasion of Ukraine. These payments were made over a seven-day period leading up to the closure of HSF Moscow as the firm was winding down its operations in Russia. The violations were reported voluntarily by HSF London, resulting in a 50% reduction in the fine. The case underscores the UK's commitment to enforcing financial sanctions as a means to weaken Russia's economic capabilities amidst the ongoing conflict in Ukraine. This penalty is one of the largest issued by OFSI to date, highlighting the significance of compliance with international sanctions.