UK government enforces Director Disqualification Sanctions
Date of publication: April 15th, 2025
In a significant move to strengthen the United Kingdom’s foreign policy and national security objectives, the UK Government has varied the designations of 2996 individuals and 818 entities across 28 autonomous and mixed sanctions regimes, thereby subjecting them to Director Disqualification Sanctions.
Under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA), Section 3A enables legislation to impose measures that bar individuals from holding directorship roles in companies with UK connections.
Understanding Director Disqualification Sanctions
Under the newly enforced regime, individuals designated under Director Disqualification Sanctions are prohibited from:
- Serving as directors of UK-registered companies.
- Acting as directors of foreign companies with sufficient UK connections, such as those with operations or assets in the UK.
- Participating in the promotion, formation, or management of any company.These prohibitions apply uniformly across England, Wales, Scotland, and Northern Ireland, and are enacted under the following statutory instruments:
- Section 11A of the Company Directors Disqualification Act 1986 (for Great Britain).
- Article 15A of the Company Directors Disqualification (Northern Ireland) Order 2002.
Failure to comply with these restrictions constitutes a criminal offence, potentially resulting in fines and/or imprisonment for up to two years.
Conclusion
The UK Government’s latest update to its sanctions’ regime marks a significant escalation in the enforcement of corporate governance and national security standards. By disqualifying thousands of individuals and entities from holding directorship roles, the government aims to enhance accountability and limit the influence of those deemed to pose a risk to UK interests.
Businesses must conduct thorough due diligence on their transactions, partnerships, and supply chains to ensure they are not directly or indirectly engaging with individuals, entities, or organisations subject to director disqualification sanctions under the updated UK regime.
These changes have been updated in ONESOURCE Global Trade Content.
For more information on how ONESOURCE Global Trade solutions can assist you in managing restricted party screening, contact your Account Manager or Customer Success Manager.