The UK's sanctions watchdog, the Office of Financial Sanctions Implementation (OFSI), has levied a £160,000 fine against Bank of Scotland, a part of Lloyds Banking Group.
This penalty follows the bank's establishment of a personal current account and subsequent processing of payments for Dmitrii Ovsiannikov. Mr. Ovsiannikov has been designated under EU sanctions legislation since November 2017, recognized for actions that have reportedly compromised or threatened the territorial integrity, sovereignty, and independence of Ukraine.
In February 2023, a total of 24 payments, amounting to £77,383, were processed through an account opened by Mr. Ovsiannikov at Halifax, a division of Bank of Scotland. OFSI’s investigation revealed that a spelling variation in his UK passport facilitated the bypassing of the bank's automatic sanctions screening system during the account opening process. The account remained unrestricted until February 24, 2023, when the bank identified him as a designated person through a "politically exposed person" screening.
The original penalty was reduced by 50% due to Bank of Scotland's voluntary disclosure of the breaches approximately one month after the payments occurred. Lloyds Banking Group commented that it "takes its regulatory responsibilities extremely seriously."
Source: https://www.theguardian.com/business/2026/jan/26/bank-of-scotland-fined-putin-ally-dmitrii-ovsiannikov