HSF fined £465,000 over payments made to sanctioned Russian banks in 2022.
The firm self-reported the "good faith errors" and said it was disappointed with the fine.
Herbert Smith Freehills has been fined £465,000 for breaching UK sanctions on Russia - the first time a law firm has been penalised for breaching Russia-related sanctions since the invasion of Ukraine.
The firm made payments totalling £3.9 million to sanctioned Russian banks Alfa-Bank, Sovcombank and Sberbank in May 2022 as it was shutting down its Moscow office.
HSF self-reported the transactions and cooperated with the investigation which meant the penalty was cut in half.
The Office of Financial Sanctions Implementation (OFSI) acknowledged the payments were “good faith errors".
In a statement, HSF said the payments did not relate to its clients or client work, or to any of the firm’s offices other than its former office in Moscow. It said it was “disappointed” by the fine.
The OFSI reinforced the hard line its taking on sanctions in the announcement, stating:
"This penalty demonstrates OFSI’s firm commitment to pursuing financial sanctions breaches wherever they occur. From the largest institutions to the smallest, everyone has an obligation to comply with the UK’s financial sanctions regime."
HSF closed its Moscow office on 31 May 2022, following Russia's invasion of Ukraine in February that year.
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