UK Iraq sanctions: updated statutory guidance
The UK Office of Financial Sanctions Implementation (OFSI) has published statutory guidance on the Iraq sanctions regime, detailing its scope, purposes, and prohibitions. The guidance applies to all UK persons and entities operating in or trading with Iraq, establishing compliance requirements for sanctions screening, asset freezes, and trade restrictions. Shippers and exporters moving goods to or from Iraq must review the full guidance to ensure their operations comply with designated-person lists and sectoral restrictions.
Photo: Ann H / PexelsThe UK Office of Financial Sanctions Implementation (OFSI) has published statutory guidance for the Iraq sanctions regime, effective as of May 2026. This guidance sets out the legal framework, scope, and practical prohibitions that apply to all UK persons and entities engaged in trade, finance, or other transactions involving Iraq.
Who is affected
All UK-based shippers, freight forwarders, exporters, and importers trading with Iraq must comply with the Iraq sanctions regime. The guidance applies to UK persons anywhere in the world and to all persons in the UK, regardless of nationality.
Key compliance areas
The guidance addresses the core prohibitions under the Iraq sanctions regime:
- Asset freezes: Designated persons and entities linked to corruption, terrorism, or sectoral concerns may be subject to asset freezes. Traders must screen all counterparties and beneficiaries against the consolidated list of designated persons.
- Trade restrictions: Certain goods and services may be prohibited or require licensing. Shippers must verify that their commodities do not fall within restricted categories and that no designated party has an interest in the shipment.
- Financial transactions: Payments, invoicing, and financial settlement with Iraq-based parties or involving designated persons are prohibited unless licensed by OFSI.
The guidance does not specify individual HS chapters or sectoral thresholds in this summary; traders should consult the full statutory text and the consolidated designated-persons list for granular product and counterparty restrictions.
What this means for shippers
Any export, import, or transit shipment involving Iraq requires immediate sanctions screening against OFSI's designated-persons list and sector-specific restrictions. Review the full guidance at gov.uk; confirm your counterparties, ultimate beneficial owners, and consignees are not designated; and apply for a license from OFSI if your transaction falls outside general licences. Failure to comply exposes your business to criminal liability and asset seizure. Start screening today using /sanctions-screen.
