Treasury Committee Demands HMRC Answers on Sanctions Regime After Investigation
The Treasury Committee is pressing HMRC for answers on its sanctions enforcement after a Sky News investigation raised concerns.
UK, Russia, HMRC, Treasury Committee, Sanctions
London: The Treasury Select Committee is asking HM Revenue & Customs (HMRC) some tough questions. This follows a Sky News investigation into how HMRC is enforcing trade sanctions on Russia.
Sky News found that HMRC issued six fines for breaking sanctions since 2022. However, they won’t name the companies involved or explain what they did wrong. HMRC also admitted they don’t know how many investigations are ongoing.
This raises concerns about the strength of the UK’s sanctions against Russia. Government officials claim these sanctions are the toughest in British history.
Despite rules against exporting certain goods to Russia, banned items still enter the country through third nations. Some believe HMRC isn’t enforcing these rules effectively.
After the investigation, Dame Meg Hiller, chair of the Treasury Committee, wrote to HMRC’s chief executive, Sir Jim Harra. She included ten questions about how HMRC handles sanctions enforcement.
One key question asks why HMRC doesn’t publish details about sanctions breaches like the Office for Financial Sanctions Implementation does. Other countries, especially the United States, often “name and shame” companies that break sanctions.
The Treasury Committee has been looking into the sanctions regime lately, focusing on loopholes and enforcement issues. HMRC must respond to the letter by February 17.