UK allows sanctioned individuals to pay property charges under new general licence

LONDON, October 12, 2026 — The Office of Financial Sanctions Implementation (OFSI) issued General Licence INT/2026/10050568, permitting individuals and entities subject to UK asset freezes to meet certain property-related financial obligations without obtaining individual authorization from the Treasury. The licence applies across 26 UK autonomous sanctions regimes, including those targeting Russia, Belarus, Iran, Syria and Venezuela, as well as the UK's global human rights and anti-corruption sanctions frameworks.

The authorization covers payments for ground rent, service charges and qualifying late payment fees associated with eligible commercial or residential leases in England and Wales. To qualify, the sanctioned person must have entered into the lease before becoming subject to an asset freeze. The licence also covers entities owned or controlled by designated persons, but excludes designations imposed to comply with United Nations obligations. Late payment fees are limited to charges arising from obligations that fell due before the licence was issued, excluding legal, enforcement and collection costs.

Under the licence, sanctioned tenants or persons acting on their behalf may transfer permitted payments into UK bank accounts held by landlords or managing agents. Financial institutions are authorized to process those transactions, while landlords and agents may transfer funds to superior landlords or retain overpayments as credits against future eligible liabilities. The measure provides a standardized mechanism for meeting property obligations that might otherwise be prohibited by financial sanctions.

Designated persons must report payments to HM Treasury within 14 days of the end of each calendar quarter, providing supporting evidence, payment amounts, recipients and transaction details. Landlords and designated persons must retain records for at least six years. The licence does not authorize transactions beyond its specified permissions or otherwise relax existing asset-freezing restrictions.

The authorization took effect on Oct. 12, 2026, and remains valid until 11:59 p.m. on Oct. 11, 2027, unless amended, suspended or revoked earlier by HM Treasury.