The Financial Conduct Authority has published findings from its latest review of firms’ sanctions systems and controls, concluding that firms have made progress in preventing breaches but still show weaknesses that continue to generate reported incidents. The review forms part of the FCA’s supervision of sanctions compliance in financial services and comes with GBP 37 billion of assets frozen in the UK as of last year. Since February 2022, the FCA has proactively assessed more than 150 firms across a range of financial services sectors. It found repeated examples of strong controls and of firms identifying potential breaches before they occurred, but said the main root causes of reported breaches were weaknesses in due diligence, alert management, transaction and name screening, and the management of frozen assets and compliance with licences. Firms also face challenges in detecting and preventing trade sanctions breaches, and the FCA noted that reports still relate mainly to the Russian sanctions regime, with additional reports involving Libya and, increasingly, Iran and North Korea. Alongside the review, the FCA signed a memorandum of understanding with the Office of Trade Sanctions Implementation covering cooperation and intelligence sharing, in addition to its existing arrangement with the Office of Financial Sanctions Implementation.
Financial Conduct Authority2026-05-28
Financial Conduct Authority finds sanctions controls have improved but gaps remain after reviewing over 150 firms
The Financial Conduct Authority published findings from its latest review of firms’ sanctions systems and controls, noting progress but persistent weaknesses that continue to generate incidents, with GBP 37 billion of assets frozen in the UK. The review identified deficiencies in due diligence, alert management, screening, and management of frozen assets and licences, and highlighted ongoing challenges in detecting trade sanctions breaches, particularly under the Russian regime and increasingly involving Libya, Iran and North Korea. The FCA also signed a memorandum of understanding with the Office of Trade Sanctions Implementation to enhance cooperation and intelligence sharing.