Sanctions compliance

This Overview is a guide to the Lexis+® UK Financial Services subtopic Sanctions compliance and includes links to appropriate materials. UK sanctions obligations apply to all businesses and persons in the UK; this sub-topic focuses on the implications for firms regulated by the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000 (FSMA 2000), cryptoasset firms registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs), and payments and e-money firms supervised by the FCA (herein referred to as firms), in their compliance with sanctions.

What are international sanctions?

Sanctions regimes are a tool of foreign policy affecting businesses or persons and are typically used where international peace and security is threatened. They can:

•
encourage a change in the behaviour, policy or activity of the target person, entity, government or country
•
apply pressure on a target to comply with certain objectives, and
•
enforce measures where diplomatic efforts have failed

Sanctions regimes are reviewed, lifted, revoked or adapted in the light of changes in the behaviour

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Financial Services News

Council of the EU approves permanent lower liquidity requirements for short-term bank transactions

The Council of the EU has approved amendments to the Capital Requirements Regulation (Regulation (EU) 575/2013) to make permanent the transitional required stable funding (RSF) factors for certain short-term securities financing transactions (SFTs) used in calculating the net stable funding ratio (NSFR). The decision ensures these RSF factors remain below those set by the Basel III standards, supporting liquidity and market stability for EU banks. It also aims to prevent a competitive disadvantage for EU banks, as many non-EU jurisdictions already apply lower permanent SFT factors. The amendments will be published in the EU’s Official Journal and take effect from 29 June 2025. The European Banking Authority will monitor and report on their impact every five years.

FCA's Rathi tries to gauge government risk appetite for crypto

Law360, London: The Financial Conduct Authority (FCA) warned a cross-party group of MPs on 10 June 2025 it needed a steer on the government's risk appetite for crypto-assets amid the push for UK competitiveness and economic growth.

Financial Services—other developments (12/6/2025)

A round-up of other developments, which have not been covered in full by the LexisNexis Financial Services practical guidance team but may nevertheless be of interest.

Coreper endorses EU mandate to revise FDI screening rules

The Council of the EU, represented by Coreper, has endorsed a mandate to revise the Foreign Direct Investment (FDI) screening regulation. The revised regulation will require all Member States to implement harmonised screening mechanisms, establish a minimum sectoral scope, and extend coverage to include EU-based entities ultimately controlled by non-EU investors. Any restrictions imposed must be justified by serious public policy or security concerns. The Council has also supported anti-circumvention measures targeting intra-EU investments by foreign-controlled subsidiaries and has narrowed the regulation’s scope to focus on sensitive areas such as military and dual-use goods. The Council, the European Parliament, and the European Commission are set to begin interinstitutional negotiations to finalise the legislation.

View Financial Services by content type :

News