Is one of your trustees on a UK Government sanctions list?

It would be prudent, then, for charities to check whether trustees, and indeed other individuals associated with the charity, are on a sanctions list. Here we show you where you can conduct the check, what the charity should do if a match is found, and what approach the Charity Commission may take.  

How do you check the sanctions lists?

So, how do you check whether an individual associated with your charity - as trustee, senior manager, guest speaker/contributor or otherwise - is a designated person subject to the UK government financial sanctions regime (or indeed the UN sanctions regime, which is also implemented by the UK)?

The Office for Financial Sanctions Implementation (OFSI), part of the Treasury, maintains the list of designated persons. You can check the OFSI Consolidated List Search or alternatively use its guide, 'Who is subject to financial sanctions in the UK'.   

What should you do if an individual associated with the charity is a designated person?

If the charity has made a pre-emptive search, and the individual is not yet a trustee, senior manager, guest speaker/ contributor etc., the charity should not appoint or work with that individual. However, if the individual is already fulfilling such a role with the charity:

• The trustees should obtain legal advice as soon as possible
• If the individual is a trustee or senior manager, the individual should resign or be removed from their role. The required action where the individual has partnered with the charity as a guest speaker / contributor / similar is more circumstance driven
• In all instances, the trustees should as a matter of urgency report to the OFSI and make a serious incident report to the Charity Commission

Two recently published inquiry reports illustrate the Charity Commission's approach to trustees and charities where a charity trustee is listed as a designated person:

• If a trustee has not resigned or been removed, the Commission may suspend and subsequently remove the trustee, who would be responsible for misconduct and/or mismanagement in the administration of the charity (such that he/she would be automatically disqualified from being a charity trustee or senior manager in the future)
• The Charity Commission is likely to open an inquiry into the charity and may appoint an Interim Manager if not convinced that the remaining trustees are taking appropriate steps to address the situation
• Whether or not the charity has followed good practice on discovering that a trustee is a designated person, the Charity Commission may form the view that the charity has suffered such a significant blow to its reputation and its ability to operate that it is no longer viable. If so, the Commission would require the charity to be wound up

For more information, please contact Shivaji Shiva in our Charities team on 0121 227 3724, or complete the form below.