Financial Sanctions Regime 2023-06-20
2023-06-20
TAGS
Response quality
Questions & Answers
Q1
Direct Answer
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Context
Constituents have raised concerns about the impact of the financial sanctions regime.
What recent assessment has been made of the effectiveness of the financial sanctions regime?
The Government undertake extensive assessment of the sanction regimes, which are eroding Russia's financial base. We have sanctioned 28 Russian banks covering 80% of Russia's banking sector and frozen more than £18 billion of Russian assets, and we have implemented unprecedented trade sanctions in addition.
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Assessment & feedback
Response accuracy
Q2
Partial Answer
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Context
Concerns raised about Russian account holders holding assets over £50,000 in their accounts.
Can the Government confirm whether it is still the case that Russian account holders in the UK can hold £50,000 or more in their accounts? What is to prevent individuals of concern from simply parcelling up assets through proxies into a large network of accounts below the permitted level?
The Office of Financial Sanctions Implementation works closely with our allies across the G7 to ensure that we have co-ordinated action among our international partners on this unprecedented package of sanctions. We have frozen the assets of 1,600 individuals and entities. We have implemented 35 different sanction regimes across government. I would be happy to take away the specific question she has asked, because it is technical, and respond.
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Assessment & feedback
Did not provide confirmation or clarification on asset limits for sanctioned individuals.
Response accuracy
Q3
Partial Answer
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Context
A start-up project in the constituency is at risk due to a pending asset freeze license application.
What steps is the Minister taking to ensure that such applications are dealt with swiftly? If I provide him with details of the company, will he ensure that the application's progress is expedited?
I am happy to take up my right hon. Friend's case. We have expanded the OFSI resources. We have a monthly monitoring and efficiency dashboard. I accept how frustrating it can be for constituents' businesses when such situations arise, and I am happy to take the matter away and get back to him swiftly.
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Assessment & feedback
Did not provide specific steps or commitment on expediting an application.
Response accuracy
Q4
Partial Answer
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Context
Continued efforts are needed to tighten the net on Russian oligarchs and their enablers.
Can the Minister confirm whether those measures will close all the loopholes, specifically the ownership thresholds that Russian oligarchs and their enablers have been able to exploit to evade sanctions?
The Government will be relentless in their pursuit of illicit assets. We have sanctioned 24 banks with global assets of over £940 billion and 120 elites with a combined worth of £140 billion. Working closely with our allies, we have incrementally and sequentially tightened that net and immobilised more than 60% of Putin's war chest of foreign reserves worth £275 billion.
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Assessment & feedback
Did not confirm closing all loopholes or specific ownership thresholds.
Response accuracy
Q5
Partial Answer
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Context
Some constituents lost their jobs because companies they worked for were owned by sanctioned Russians.
May I have a word with the Minister about cases where people have not been able to get P60s due to difficulties in obtaining loans from banks, affecting businesses that cannot pay accountants?
Those points demonstrate how serious and extensive the Government's actions are, but I recognise that sometimes unfortunate situations arise and I am happy to look at that case and take it back to the Office of Financial Sanctions Implementation.
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Assessment & feedback
Did not provide commitment or concrete steps for intervention.
Response accuracy
Q6
Partial Answer
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Context
Am I right in thinking that the Minister is prepared to examine the possibility of taking action against proxies and those persons of interest who use proxies?
To pursue the issue of proxies raised by my hon. Friend, am I correct in understanding that he is prepared to examine the possibility of taking action against proxies and individuals using them?
The Government are committed to an ever-tighter grip on illicit finance and those individuals close to Putin who make a material contribution to his regime. I am happy to receive representations on whatever case he wishes to bring to me, but I will not commit on the Floor of the House to individual extensions.
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Assessment & feedback
Did not confirm examining or taking action against proxies directly.
Response accuracy