Episode 220

30th January – 1st February 2026

Sanctions

EU Imposes New Sanctions on Iran Over Human Rights Abuses and Support for Russia’s War

The European Union has announced a fresh round of sanctions on Iran, targeting 15 individuals and six entities for serious human rights violations and Tehran’s ongoing military support for Russia’s war against Ukraine. According to the Council’s 29th January press release, those listed include senior Iranian officials such as Interior Minister Eskandar Momeni, Prosecutor General Mohammad Movahedi‑Azad, and multiple IRGC commanders, all implicated in the violent suppression of peaceful protests and the arbitrary arrest of activists. The EU has also sanctioned Iranian regulators and tech organisations, including SATRA and the Seraj Cyberspace Organisation, for censorship, online repression and developing surveillance tools which disrupted internet access. The measures impose asset freezes, EU travel bans, and restrictions on providing funds, bringing the EU’s human‑rights sanctions regime on Iran to 247 individuals and 50 entities. The Council said the move demonstrates the EU’s solidarity with the Iranian people and its determination to counter Iran’s destabilising activities abroad.

UK Sanctions Watchdog Details Joint Crackdown on Cryptoasset Abuse

A new blog post from the Office of Financial Sanctions Implementation outlines how UK enforcement bodies are intensifying efforts to disrupt the use of cryptoassets for sanctions evasion, describing a recent multi‑agency operation with the Crypto Cash Fusion Cell which combined real‑time intelligence sharing, blockchain analytics, and coordinated action against UK‑based individuals suspected of breaching financial sanctions.

Government Blog Post Explains Shift to a Single UK Sanctions List

A new UK government blog post outlines the transition to a single, unified UK Sanctions List, which became the sole official source of sanctions designations on 28th January 2026, replacing the OFSI Consolidated List. The post explains why the change was made, how businesses should update their screening systems, what happens to legacy OFSI Group IDs, and the new formats and upgraded search tools now available to support compliance.

OFSI Unveils Major Overhaul of UK Sanctions Enforcement Framework

The UK’s Office of Financial Sanctions Implementation (‘OFSI’) has announced a sweeping update to its enforcement framework, introducing new tools, higher penalties, and faster case‑handling processes aimed at strengthening the country’s sanctions regime. The changes follow a cross‑government review in 2025 which highlighted the need for greater deterrence and more efficient enforcement amid a sharp rise in complex sanctions cases since Russia’s 2022 invasion of Ukraine.

OFSI confirmed it will implement all five proposals consulted on last year, following a 12‑week public consultation which drew significant industry engagement. Most reforms, such as a new case assessment matrix, enhanced voluntary disclosure discounts, a Settlement Scheme, and an Early Account Scheme, will take effect in February 2026 through updated public guidance.

The agency will also streamline enforcement for information, reporting, and licensing offences, and plans to double the statutory maximum civil penalty to the greater of £2 million or the full value of the breach, pending legislative approval. OFSI currently has 240 active investigations, up from 172 in 2023, and says the new framework will allow it to prioritise the most serious and strategically important cases while accelerating investigations and outcomes.

Director Giles Thomson emphasised that the reforms aim to improve transparency, predictability, and compliance across the financial sector, while enabling OFSI to respond more quickly to emerging risks. A webinar will follow once businesses have reviewed the updated guidance.

How EU Messaging Can Make or Break Public Support for Rule‑of‑Law Sanctions

A new blog post from LSE European Politics argues that the EU’s ability to maintain public support for rule of law sanctions against member states depends heavily on how those sanctions are communicated, drawing on survey experiments in Hungary, Poland and Bulgaria to show that framing, justification and the presence of supportive domestic or international voices can significantly shape public perceptions and reduce the risk of backlash.

Fraud

Food Crime Unit Urges Vigilance After Poultry Theft

The Food Standards Agency’s National Food Crime Unit is urging food businesses to strengthen their vigilance against food fraud following the jailing of a man involved in the theft of more than half a million pounds’ worth of turkey and chicken, according to the agency’s latest update. The case demonstrates the scale of criminal activity targeting the food supply chain and reinforces the NFCU’s call for companies to report suspicious behaviour and tighten controls to protect both consumers and the integrity of the sector.

NAO Warns MoD Is Failing to Tackle Fraud Effectively, Recovering Just 48p per £1 Spent

The National Audit Office has criticised the Ministry of Defence for recovering less than half the money it spends combating fraud and economic crime, with a return of just 48p for every £1 invested between 2021–22 and 2024–25. According to the NAO’s new report, the MoD faces up to £1.5 billion a year in potential fraud exposure, largely linked to procurement, yet investigations remain hampered by fragmented structures, poor information‑sharing, and strained relationships between counter‑fraud and policing teams. While the department’s performance improved last year with it saving £1.34 for every £1 spent, the watchdog says progress is far too slow, with whistleblowing cases often taking years to resolve or ending without satisfactory outcomes. The NAO is urging the MoD to adopt a smarter, more coordinated approach to fraud risk, including clearer objectives, better oversight of investigations, and stronger assurance that cases handled outside specialised units are effectively managed.

NCA and NatWest Launch National Campaign to Combat Surging Invoice Fraud Losses

The National Crime Agency and NatWest have launched a nationwide campaign warning businesses about the growing threat of invoice fraud, after new figures revealed that victims lost nearly £4 million in September 2025 alone, averaging more than £47,000 per case. According to Action Fraud, invoice scams now account for 85% of all payment‑diversion fraud losses, with criminals impersonating suppliers, intercepting emails and sending highly convincing fake invoices to divert payments into their own accounts. The campaign, co‑branded with the Home Office’s ‘Stop! Think Fraud’ initiative, urges finance teams to check for sudden changes in bank details, verify supplier information using known phone numbers, and never approve payments until all details are confirmed. The NCA says the crime can destroy businesses overnight by wiping out their cashflow, and warns that prevention remains just as important as ongoing efforts to identify and disrupt the criminal networks behind these sophisticated scams.

Money Laundering

Hundreds of UK Businesses Named and Fined for Breaching Anti–Money Laundering Rules

HMRC has published its latest list of UK businesses which failed to comply with anti–money laundering regulations between April and September 2025, revealing hundreds of firms across sectors, from estate agents and accountants to art dealers and money service businesses, hit with penalties ranging from just over £1,000 to more than £100,000. Most breaches involved failing to register for supervision on time, while others related to poor due‑diligence procedures, missing risk assessments, inadequate staff training, and failure to notify HMRC of major changes. The publication is part of HMRC’s statutory duty to name non‑compliant firms under the Money Laundering Regulations 2017 and is intended to encourage better controls in high‑risk industries. HMRC stresses that businesses may have since changed address or improved compliance, but the list highlights ongoing gaps in the UK’s defences against illicit finance.

Other Financial Crime

DOJ Issues First‑Ever Antitrust Whistleblower Reward in $16M Bid‑Rigging and Shill‑Bidding Scheme

The US Department of Justice has awarded its first‑ever anti-trust whistleblower reward of $1 million to an individual whose tip exposed a $16 million bid‑rigging and shill‑bidding conspiracy involving EBLOCK Corporation’s used‑car auction platform. The whistleblower’s information led to criminal charges and a deferred prosecution agreement requiring EBLOCK to pay a $3.28 million fine and overhaul its compliance systems. According to court documents, employees at EBLOCK’s acquired Company A, colluded with Company B to fix bids, share confidential auction data, and use software to place fake bids which inflated vehicle prices, harming consumers. Federal officials emphasised the critical role whistleblowers play in uncovering hidden antitrust schemes, noting this award, issued just six months after the programme launched, signals strong incentives for insiders to report cartel activity.

US Government Seizes Over $400 Million Linked to Helix Darknet Crypto Mixer

The US Justice Department has secured legal title to more than $400 million in cryptocurrencies, real estate and other assets tied to Helix, a darknet bitcoin‑mixing service used extensively by online drug traffickers to launder illicit profits. According to court documents, Helix, run by Larry Dean Harmon, processed over 354,000 bitcoin worth roughly $300 million between 2014 and 2017, routing funds through layers of obfuscating transactions to hide their origins. Harmon, who also built the associated darknet search engine Grams, pleaded guilty to conspiracy to commit money laundering in 2021 and was sentenced in 2024 to three years in prison. A final forfeiture order issued on 21st January formally transferred the seized assets to the government, marking one of the largest financial recoveries to date in a darknet‑related crypto‑laundering case.

UK Police Reform Could Boost Economic Crime Enforcement; Risks Politicisation and Loss of Focus

The government’s plan to create a new National Police Service offers major opportunities to strengthen the UK’s fight against dirty money and economic crime by consolidating key National Crime Agency units and potentially resolving long‑standing recruitment and retention problems, according to a blog post by Spotlight on Corruption. However, the post argues, significant risks remain: economic crime could be deprioritised within a larger force focused on counter‑terrorism and serious organised crime, while proposed powers for the Home Secretary raise concerns about safeguarding policing from political influence. The forthcoming independent review will need to ensure robust structures, protected funding, and statutory guarantees of operational independence so that the reforms enhance, rather than undermine, the UK’s capacity to combat corruption and financial crime.