meta_id 3192862

On May 28, 2026, the Financial Conduct Authority (FCA) published findings from its latest review of sanctions systems and controls across the UK financial services sector, highlighting both progress and persistent gaps in firms' ability to prevent sanctions breaches. The FCA has proactively assessed the sanctions systems and controls of over 150 firms since February 2022, working alongside the Office of Financial Sanctions Implementation (OFSI) and the Office of Trade Sanctions Implementation (OTSI). The review found that while firms have demonstrated strong controls in identifying potential sanctions breaches before they occur, repeated weaknesses persist in due diligence, alert management, transaction and name screening, and the management of frozen assets and compliance with licences. Firms continue to face particular challenges in detecting and preventing trade sanctions breaches, which relate to bans on the export and import of goods, technologies and services. The range of controls used for trade sanctions compliance is notably greater than those used for financial sanctions, indicating inconsistent application across sanctions regimes. Reports from firms continue to relate primarily to the Russian sanctions regime, though the FCA also identified reports relating to Libya, Iran, and North Korea. As of last year, £37 billion worth of assets had been frozen in the UK. On May 28, 2026, the FCA signed a Memorandum of Understanding (MoU) with OTSI, establishing formal arrangements for cooperation and intelligence sharing between the two organisations. This complements an existing MoU between the FCA and OFSI. The FCA is sharing identified good and poor practice with all firms to support further strengthening of sanctions controls across the sector.