Reference Case Number: FOI9945
Freedom of Information: Right to know request:
1. How many sanctions breaches were reported to the FCA in 2022?
2. Of (1) how many of these breaches related to sanctions imposed in response to the Russian invasion of Ukraine?
3. Of (1) how many of these breaches resulted in the appointment of a Skilled Person under s.166 to review the adequacy of firms' sanctions systems and controls (or financial crime controls more broadly)?
4. Of (1), how many of these breaches resulted in the opening of an enforcement investigation into either a firm and/or individuals (please provide information in relation to both)?
5. Of (2), how many of these breaches resulted in the opening of an enforcement investigation into either a firm and/or individuals (please provide information in relation to both)?
6. Of (2) how many of these breaches resulted in the appointment of a Skilled Person under s.166 to review the adequacy of firms' sanctions systems and controls (or financial crime controls more broadly)?
7. How many enforcement investigations does the FCA currently have open into firms relating to the adequacy of sanctions systems and controls (whether or not there have been any reported breaches of sanctions)?
8. In relation to (7), when were these investigations opened (please provide a breakdown of the number of investigations opened per year)?
9. In relation to (7), please provide information regarding the number of individuals under investigation in connection with these cases.
10. Of (9), how many of these individual investigations are under SMCR?
11. In 2022, how many Skilled Persons were appointed under s.166 FSMA to review the adequacy of firms' sanctions systems and controls?
12. In 2021, how many Skilled Persons were appointed under s.166 FSMA to review the adequacy of firms' sanctions systems and controls?
13. Following the FCA's notice requiring regulated firms to notify the FCA of issues relating to firms on the Financial Service Register, or any other FCA register or companies with UK listed securities, how many notifications did the FCA receive?
14. Of (13) how many of these reports resulted in the FCA commencing an investigation into a firm in connection with issues pertaining to sanctions evasion?
Clarified request (20/02/2023):
I confirm that, in respect of questions 1 and 2, we are referring to suspected sanctions breaches.
In respect of questions 4, 5, 7-10 and 14, it would be helpful if you could provide a breakdown of both i.e. cases which relate principally to sanctions systems and controls; and cases where sanctions systems and controls feature.
In respect of questions 13 and 14, I confirm that we are referring to this page on your website: https://landmark-phase.live/firms/financial-crime/reporting-sanctions-evasions.%3C/p%3E
FCA response:
Thank you for your request of 20 January 2023 concerning sanctions breaches and skilled person reviews.
As advised in our clarification email of 17 February 2023, Financial Sanctions are imposed by the Government and may apply to individuals, entities and government, who may be resident in the UK or abroad. Any firm who knows or suspects a breach of financial sanctions must report it to the Office of Financial Sanctions Implementation (OFSI), as the competent authority for enforcing the UK sanction regimes.
The FCA is responsible for ensuring that financial services firms have appropriate systems and controls to mitigate the risk of financial crime, including the prevention of UK sanctions breaches. This means that the FCA does not determine whether a breach has occurred. Any notifications provided to us are categorised as a suspected sanctions breach and we may use this information to consider whether the firm has appropriate sanctions systems and controls. More information can be found on our website here: https://landmark-phase.live/firms/financial-crime/financial-sanctions%3Cspan class="print-footnote">[1].
On 20 February 2023 you confirmed that, in respect of:
- questions 1 and 2, you are referring to suspected sanctions breaches.
- questions 4, 5, 7-10 and 14, you are interested both in cases which relate principally to sanctions systems and controls, and those where sanctions systems and controls feature (for example, where this is only one of a number of different issues under investigation).
- question 13 and 14, you are referring to this page on our website: https://landmark-phase.live/firms/financial-crime/reporting-sanctions-evasions%3Cspan class="print-footnote">[2].
With this in mind, we have processed your request in line with the provisions of the Freedom of Information Act 2000 (FOIA) and we will respond to each point in turn.