First Forfeiture of Sanctioned Funds: A Landmark Move by the UK’s National Crime Agency
In a significant development, the UK’s National Crime Agency (NCA) has successfully forfeited £780,000 in sanctioned funds—marking a major achievement for its Combatting Kleptocracy Cell, established in 2022. This case, involving funds linked to sanctioned Russian oligarch Petr Aven, underscores the NCA’s growing effectiveness in tackling high-end money laundering and sanctions evasion.
The forfeiture was executed under the UK’s Proceeds of Crime Act 2002 (POCA). Although the funds were not directly frozen under UK sanctions regulations, they were identified as criminal assets due to their connection to Aven, a sanctioned individual under the Russia (Sanctions) (EU Exit) Regulations 2019. The NCA argued that these funds were being held to help Aven bypass sanctions, making them subject to forfeiture.
This case highlights the importance of coordination between different UK authorities. While the UK sanctions regime, governed by the Sanctions and Anti-Money Laundering Act 2018 (SAMLA), imposes asset freezes on designated persons, POCA allows for the actual recovery of funds when they are connected to criminal activity, such as sanction evasion.
However, this case also raises a broader question: should the UK government establish a more direct route for confiscating sanctioned assets? Currently, without the involvement of POCA, frozen funds under SAMLA are not typically recoverable.
At our firm, we specialize in navigating complex legal landscapes like these, ensuring compliance and offering strategic advice on matters involving sanctions and asset recovery. If you or your business needs guidance in these areas, we’re here to help.
