Episode 216

16th January – 18th January 2026

Sanctions

UK Lowers Oil Price Cap on Seaborne Russian Crude Oil

The UK and EU have jointly announced a reduction in the Oil Price Cap on seaborne Russian crude oil from $47.60 to $44.10 per barrel, effective from 23:01 (GMT) on Saturday, 31st January 2026. This adjustment, aimed at maintaining regulatory alignment and targeting Russian revenues in response to Russia’s ongoing war against Ukraine, applies to all services covered by the cap, including maritime transport, brokering, and financial services related to Russian crude shipped from Russia to third countries or between third countries. For contracts entered into before the new cap takes effect and compliant with the previous $47.60 limit, a wind-down period will run until 22:59 (BST) on Thursday, 16th April, after which the lower cap will be enforced. The Office of Financial Sanctions Implementation has updated its FAQs (154-161) to help industry adapt during the transition, and all market participants must continue to meet the reporting and attestation requirements set by the Oil Price Cap General Licence. The UK Maritime Services Ban and Oil Price Cap Industry Guidance is here.

Sanctions Target Iranian Officials and Financial Networks

The US Department of the Treasury announced new sanctions against senior Iranian security officials and extensive shadow‑banking networks linked to Iran’s crackdown on peaceful protests and its illicit financing operations. The measures target individuals involved in directing violence against demonstrators, as well as companies and intermediaries which facilitate billions in petroleum‑related revenue laundering for Iran’s leadership and security apparatus. The action blocks US-controlled assets of designated parties and reinforces ongoing efforts to pressure the Iranian regime over human rights abuses and sanctions evasion.

Fraud

SFO Launches Major Fraud Probe into Home REIT

The Serious Fraud Office in the UK has opened a large‑scale bribery and fraud investigation into the past management of Home REIT, a social housing investment company, following concerns about the valuation of its properties and the ability of tenants to pay rent. Six people have been arrested and seven sites searched across the UK and Italy as part of the operation, which centres on an estimated £300 million in suspected wrongdoing. Home REIT, once promoted as a vehicle to fund housing for vulnerable people, saw its rapid rise collapse after an investor report raised serious red flags in 2022, leading to its suspension from trading in early 2023.

Money Laundering

Spain Hits CaixaBank with Record €30 Million AML Penalty

Spain’s anti‑money‑laundering watchdog, Sepblac, has imposed more than €30 million in fines on CaixaBank for serious compliance failures linked to a high‑value real‑estate transaction dating back nearly a decade. The penalties, among the largest ever issued by the regulator, stem from Bankia’s 2016 sale of a major Madrid skyscraper to Amancio Ortega, a deal now found to have involved inadequate due‑diligence checks and missed red flags around complex corporate structures and high‑risk individuals. CaixaBank, which absorbed Bankia in 2021, has appealed the sanctions, while Spanish authorities continue to scrutinise the transaction as part of a broader push to tighten oversight of large‑scale property deals and financial‑crime risks.

Revere Man Gets 15 Years for Role in International Money‑Laundering Network

A Massachusetts man has been sentenced to 15 years in federal prison for laundering hundreds of thousands of dollars in drug proceeds for a transnational trafficking network and for possessing more than 17 kilograms of controlled substances. Jason Hunter, 48, repeatedly delivered bulk cash to undercover agents posing as money launderers and was arrested in April 2024 with $100,000 in drug proceeds, leading to a search which uncovered large quantities of methamphetamine, fentanyl‑containing counterfeit pills, cocaine and marijuana. Prosecutors say Hunter worked with brokers tied to drug suppliers in Central and South America, forming part of a broader federal effort to dismantle international criminal organisations operating in the United States.

EU Warns Bosnia and Herzegovina of Imminent FATF Greylisting Risk

Bosnia and Herzegovina is just weeks away from the end of its one‑year FATF observation period, with the EU urging authorities to take swift action to fix major deficiencies in the country’s anti‑money‑laundering and counter‑terrorist‑financing framework. MONEYVAL’s 2024 evaluation identified serious gaps, and without rapid progress, particularly the adoption of state‑level laws on asset confiscation, targeted financial sanctions, and the creation of a long‑overdue beneficial‑ownership register, BiH faces a high likelihood of being placed on the FATF “grey list,” a move which would immediately damage its financial credibility, disrupt payments and investment, and hinder ambitions such as joining SEPA.

MONEYVAL Reports Show Mixed Progress Across Four Countries

The Council of Europe’s MONEYVAL body has released follow‑up assessments on Georgia, Montenegro, Poland and Slovakia, finding that all four have strengthened their anti‑money‑laundering and counter‑terrorist‑financing frameworks, though to varying degrees. Georgia has addressed some gaps but still faces notable shortcomings, especially around non‑profit organisations. Montenegro shows significant improvement, with many recommendations upgraded to “largely compliant.” Poland has made progress on issues such as crypto‑asset regulation but still has several partially compliant areas. Slovakia stands out for substantial legislative reforms which improved ratings across multiple technical standards.

ANC Hails EU Decision to Remove South Africa from High‑Risk List

The African National Congress has welcomed the European Union’s removal of South Africa from its list of high‑risk third‑country jurisdictions, calling it both a technical and political victory which reflects the country’s extensive reforms to combat money laundering and terrorist financing. Following South Africa’s delisting by the FATF in 2025, the ANC frames the EU decision as proof of strengthened financial governance, improved state capacity, and renewed commitment to ethical, transparent institutions, which positions the country as a more trusted global economic partner while reinforcing its broader agenda of national renewal.

Bribery and Corruption

Transparency International Warns US Is Undermining Its Anti‑Corruption Leadership

An opinion piece from Transparency International argues that the United States, which has long been a global standard‑setter in anti‑corruption efforts, is jeopardising its leadership through policy decisions made during the first year of the Trump administration. The author contends that dismantling key anti‑kleptocracy units, weakening enforcement of anti‑corruption laws, misusing sanctions tools, delaying anti‑money‑laundering rules, and cutting foreign assistance have collectively eroded the integrity of the US anti‑corruption framework. Transparency International describes its own efforts to defend core safeguards, strengthen beneficial‑ownership rules, and push for stronger oversight of cryptocurrency markets, warning that US actions have global consequences for the fight against corruption.

Market Abuse

EU and UK Regulators Sign MoU to Strengthen Oversight of Critical Tech Providers

The European Supervisory Authorities and the UK’s financial regulators have signed a Memorandum of Understanding to coordinate the oversight of critical ICT third‑party service providers under the Digital Operational Resilience Act, establishing formal procedures for information‑sharing, joint oversight activities, and cross‑border cooperation. The agreement follows an assessment confirming the UK’s confidentiality and professional‑secrecy regime is equivalent to EU standards, and is intended to bolster operational resilience across the financial sector by ensuring consistent supervision of major technology providers which support firms on both sides of the Channel. The Bank of England press release is here.

Other Financial Crime

Financial Intelligence Units Unite Against Global Organised Crime

A coalition of 16 financial intelligence units from across the world convened in Washington for the inaugural meeting of the Transnational Organised Crime Working Group, co‑hosted by the US Treasury’s FinCEN and Mexico’s financial intelligence unit. The group committed to strengthening joint efforts to detect and disrupt transnational organised crime by improving information‑sharing, coordination, and collective analytical capabilities, marking a significant step toward more unified global financial crime prevention.