FCA: firms improving but sanctions control gaps remain
FCA reported firms have improved sanctions controls, with £37bn assets frozen, but warned material gaps remain in systems and controls.
The FCA acknowledged progress since February 2022 in sanctions implementation but flagged persistent weaknesses. Firms must strengthen systems supporting OFSI and OTSI, including detection, escalation and reporting of breaches.
Signals continued supervisory scrutiny of sanctions controls and likely enforcement focus on residual gaps.
Action Required
Reassess sanctions screening, governance and reporting controls against OFSI/OTSI expectations and FCA findings.
Sanctions compliance remains a top supervisory priority with cross-sector enforcement risk.
Update sanctions risk assessment; benchmark screening, governance and breach reporting against FCA findings and OFSI/OTSI expectations.
“FCA reported £37bn frozen in UK and progress since 2022 but warned gaps remain in sanctions systems and controls supporting OFSI and OTSI.”