UK Iran sanctions: statutory guidance on regime scope & prohibitions
The UK Office of Financial Sanctions Implementation (OFSI) has published statutory guidance on the Iran sanctions regime, outlining its purposes, scope, and prohibited activities. This guidance applies to UK persons and anyone conducting business in the UK and clarifies which transactions, entities, and sectors fall under sanctions. Shippers, freight forwarders, and exporters must consult this guidance to identify restricted parties, prohibited goods, and compliance requirements when handling shipments to, from, or involving Iran.
Photo: muaz semih güven / Pexels# UK Iran Sanctions Regime: OFSI Statutory Guidance
The UK Office of Financial Sanctions Implementation (OFSI) has published statutory guidance on the Iran sanctions regime, effective 1 May 2026. This guidance sets out the legal framework, purposes, scope, and specific prohibitions that apply to all UK persons and anyone conducting business within UK jurisdiction.
Who is affected
The regime applies to:
- UK persons (individuals, entities, and any person incorporated or constituted under UK law)
- Anyone conducting business in the UK, regardless of domicile
- All shipments, financial transfers, and transactions involving Iran or Iranian-sanctioned parties
Freight forwarders, e-commerce merchants, and exporters must verify that counterparties, consignees, and beneficial owners are not designated individuals, entities, or sectors subject to sanctions.
Key scope and prohibitions
OFSI's statutory guidance clarifies:
- Financial sanctions: prohibitions on transfers of funds, financial services, and credit to Iran or designated persons
- Trade sanctions: restrictions on export, import, and re-export of goods to Iran or Iranian entities
- Sectoral restrictions: limitations on dealings with specific Iranian sectors (e.g., oil, gas, petrochemicals, shipping, banking)
- Asset freezes: prohibition of access to funds and economic resources belonging to designated persons or entities
Shippers must cross-check consignees and ultimate customers against OFSI's designated-persons list (DPL) and ensure goods do not fall within prohibited categories or sectors.
Compliance obligations
The guidance reiterates that:
- Due diligence is mandatory: all parties in the supply chain must perform sanctions-screening and beneficial-ownership checks
- Reporting threshold: financial institutions and certain obligated entities must report suspicious activity and breaches
- No exceptions for humanitarian goods without explicit OFSI license approval
- Penalties for breach include civil monetary penalties and criminal prosecution
What this means for shippers
If you ship goods to, from, or via Iran, or work with Iranian-origin consignees or suppliers, you must immediately screen all parties against OFSI's designated-persons list and consult the full statutory guidance. Non-compliance carries criminal and civil liability. Review your customer and counterparty lists now; apply for a license from OFSI before attempting any Iran-related shipment. Use our sanctions-screening tool to verify all parties before proceeding.
