The legal architecture beneath BNA

Primary legislation. The Sanctions and Anti-Money Laundering Act 2018 (SAMLA, 2018 c.13) is the enabling statute for essentially all post-Brexit UK sanctions. It doesn’t itself list licensing grounds – it authorises Treasury/the Secretary of State to make regime-specific secondary legislation.

Regime-specific regulations. Each sanctions regime (Russia, Iran, Syria, Belarus, Chemical Weapons, and so on) has its own statutory instrument made under SAMLA – for example the Russia (Sanctions) (EU Exit) Regulations 2019 (SI 2019/855). Each of these includes a schedule titled “Treasury licences: purposes,” which is the actual legal source of each licensing ground. I confirmed this schedule structure directly: in the Chemical Weapons (Sanctions) (EU Exit) Regulations 2019 (SI 2019/618), Schedule 2, paragraph 2, “Basic needs” reads almost exactly as you’d expect:

To enable the basic needs of a designated person, or (in the case of an individual) any dependent family member of such a person, to be met.

For individuals, it lists medical needs, food, insurance premiums, tax, rent or mortgage, and utility payments as included needs. The Russia Regulations carry the equivalent ground at Schedule 5, paragraph 2, though I wasn’t able to pull the exact Russia-specific wording (only confirmed its existence and paragraph position via secondary indices) – the substance is consistent across regimes but the schedule number and paragraph numbering differ regime to regime, so it’s worth checking the specific regulation rather than assuming identical numbering.

Where basic needs sits among the other grounds. Per OFSI’s own “How to apply for a financial sanctions licence” guidance, the generally available licensing grounds are:

• basic needs
• legal fees and expenses
• prior obligations (pre-designation contracts)
• routine holding or maintenance of frozen funds/economic resources
• implementation of a judicial, administrative, or arbitral decision or lien
• post-designation judicial decisions (non-UN designations only)
• extraordinary expenses
• extraordinary situations (non-UN designations only)
• humanitarian assistance
• diplomatic missions
• insolvency
• divestment

That page also confirms the general/specific licence mechanics I described earlier: general licences are issued by OFSI at its own initiative for a defined class of activity, and OFSI does not accept applications for them – you either fall within one or you apply for a specific licence.

The direct throughline to BNA

This is the most useful find. OFSI’s “Designated Individuals Licensing Principles” (a policy document sitting under the General Guidance, last updated 2 February 2026) already contained a formal benchmark for basic needs, at Principle 4:

Licensing should permit basic needs, which OFSI considers to include the reasonable standard of living as compared to a person receiving the net UK median wage.

And Principle 4(a): “Ordinarily, Principle 4 will be generally satisfied by granting a designated individual the net UK median wage.”

That’s a striking match to today’s BNA FAQs, with one difference worth flagging as a genuine shift rather than a restatement: the February principle benchmarks to the net UK median wage (an individual figure), while today’s FAQ benchmarks to a median income household. A household benchmark is not the same number as an individual wage benchmark – it implicitly accounts for household composition and dependents in a way a flat wage figure doesn’t. I can’t tell you from the FAQ text alone whether that’s a deliberate policy refinement or just looser drafting, but it’s the kind of distinction worth watching for in OFSI’s next General Guidance update, since it would change the actual capped amount a DP receives.

Historical background, clearly caveated as background rather than confirmed lineage: In 2023, litigation against OFSI (Fridman v HMT, the first challenge to an OFSI licensing decision under the Russia Regulations) resulted in disclosure of a previously secret internal “Basic Needs Framework,” which split basic needs into “core needs” (proposed to be met by a flat monthly sum pegged to median wage) versus needs beyond that. The High Court dismissed the claim and confirmed OFSI retains “residual discretion to refuse to grant a licence, even if the conditions for the grant of a licence are met” – a principle that reappears in today’s FAQ as “compliance with those conditions does not guarantee that a licence will be renewed or varied.” Commentators at the time (Law Gazette, November 2023) explicitly called for OFSI to formalise exactly this kind of standing monthly allowance rather than handling it case by case. I can’t point to a document that explicitly says “BNA is the formalisation of the Basic Needs Framework” – but the throughline from the 2023 disclosure, to the February 2026 Designated Individuals Licensing Principles, to today’s FAQ is consistent enough that I think it’s a fair inference, not a stretch.

A limitation worth being upfront about

I tried to independently verify FAQs 197-202 on OFSI’s live FAQ page. The version I could retrieve carries a “last updated” stamp of 29 May 2026, predating your attachment’s 21 July 2026 date – so I couldn’t cross-check the exact text against a live, independently-fetched copy; I’m relying on your attachment as the primary source for the BNA-specific content itself. What I can confirm independently is that the FAQ numbering, format, and “Added on:” convention in your document are consistent with OFSI’s genuine, ongoing FAQ series (which runs to at least FAQ 186 in the version I retrieved), so the document is stylistically and structurally what it claims to be – I just can’t yet corroborate the specific new entries from a second, independent live source.

Source list

Primary legislation and regulations

• Sanctions and Anti-Money Laundering Act 2018 (c.13) – legislation.gov.uk/ukpga/2018/13
• Chemical Weapons (Sanctions) (EU Exit) Regulations 2019 (SI 2019/618), Schedule 2, para 2 (“Basic needs”) – legislation.gov.uk/uksi/2019/618/schedule/2/paragraph/2/data.html
• Russia (Sanctions) (EU Exit) Regulations 2019 (SI 2019/855), regulation 64 and Schedule 5 – legislation.gov.uk/uksi/2019/855/regulation/64

OFSI guidance and policy

• OFSI, “How to apply for a financial sanctions licence” (last updated 1 September 2025) – gov.uk/guidance/licences-that-allow-activity-prohibited-by-financial-sanctions
• OFSI, “UK Financial Sanctions FAQs” (updated 29 May 2026 as retrieved) – gov.uk/government/publications/uk-financial-sanctions-faqs/uk-financial-sanctions-faqs
• OFSI, “Designated Individuals Licensing Principles” (updated 2 February 2026) – gov.uk/government/publications/financial-sanctions-licensing/ofsi-licensing-designated-individuals-licensing-principles–2
• OFSI, “UK financial sanctions general guidance” (updated 28 January 2026) – gov.uk/government/publications/financial-sanctions-general-guidance/uk-financial-sanctions-general-guidance
• OFSI Blog, “OFSI successfully defends first court review” (Fridman v HMT) – ofsi.blog.gov.uk/2023/11/28/ofsi-successfully-defends-first-court-review

Commentary (context on the pre-BNA “Basic Needs Framework”)

• Law Gazette, “Sanctions: Time for a general licence to cover basic needs” (13 November 2023) – lawgazette.co.uk/practice-points/time-for-a-general-licence-to-cover-basic-needs/5117856.article
• Corker Binning, same title/content (23 September 2024 mirror) – corkerbinning.com/time-for-a-general-licence-to-cover-basic-needs