The FCA has published findings from its latest review of sanctions controls across more than 150 financial services firms, concluding that while standards have improved since 2022, material weaknesses persist. Common failings include inadequate due diligence, poor alert management, and gaps in transaction and name screening — particularly around trade sanctions, where the regulator found a wider and less consistent range of compliance approaches than for financial sanctions.
For retail forex and CFD traders, the takeaway is straightforward: brokers operating under FCA supervision face increasing scrutiny on their internal controls, and firms with weak compliance infrastructure risk enforcement action or licence conditions that could disrupt client services. The review also flagged growing attention to sanctions regimes beyond Russia, notably Iran and North Korea, which may tighten onboarding and payment processing for clients in or connected to those jurisdictions. The FCA has also signed a new memorandum of understanding with the Office of Trade Sanctions Implementation, signalling closer cross-agency coordination. Traders should favour brokers that can demonstrate robust, proactive sanctions screening rather than reactive patching.