PARLIAMENTARY WRITTEN QUESTION
Financial Services (2 September 2024)

The Office of Financial Sanctions Implementation (OFSI) within HM Treasury is responsible for ensuring financial sanctions are properly understood, implemented and enforced. OFSI regularly engages with the financial services sector including through issuing guidance on our compliance and enforcement approach.

While the Treasury is responsible for setting the overall legal framework for financial sanctions, the Financial Conduct Authority is responsible for regulating and supervising the financial services industry. The FCA works closely with FCA-authorised financial institutions to ensure that their sanctions screening and controls are appropriate for the sanctions risk that firms are exposed to. In September 2023, the FCA published the outcomes of its work on sanctions systems and controls, including those relating to screening processes. The FCA also aims to encourage the use of innovation and new technologies, including the development of Regulatory Technology (RegTech) tools within the financial services market as a means to help fight financial crime. OFSI alongside the FCA will continue to undertake engagement with the financial services sector to raise awareness and compliance of financial sanctions.