Episode 222

6th February – 8th February 2026

Sanctions

OFSI Updates General Licence Following Bank Merger

On 5th February 2026, the UK Office of Financial Sanctions Implementation (‘OFSI’) amended General Licence INT/2022/1947936 to reflect the merger of Bank FC Otkritie with BM‑Bank, removing the former from Annex I and replacing it with the latter. Individuals or entities intending to rely on this licence are advised to review the updated text to ensure full compliance with its permissions and conditions. On the same date, OFSI also updated FAQs 147–148 to align with the changes made to the licence.

UK Designates Six Individuals Under Sudan Sanctions Regime

The UK Government announced on Thursday, 5th February, the designation of six individuals under the Sudan Sanctions Regime. Those listed are Alvaro Andres Quijano Becerra, Abu Aqla Mohamed Kaikal, Claudia Viviana Oliveros Forero, Mateo Andres Duque Botero, Hussein Barsham, and Mustafa Ibrahim Abdel Nabi Mohamed, each now subject to sanctions measures as part of the UK’s response to the ongoing crisis in Sudan.

How Crypto Helps Sustain Russia’s War Effort

A Centre for European Policy Analysis (‘CEPA’) article published this week – How Crypto Funds Russia’s War – argues that cryptocurrencies have become a useful, if still limited, tool for Moscow to blunt the impact of Western sanctions and support its war against Ukraine. The piece explains how Russia and pro‑Kremlin actors use crypto for cross‑border payments, fundraising, mining, and sanctions evasion, particularly through stablecoins and loosely regulated exchanges, even as traditional finance remains the dominant funding source. CEPA warns that gaps in enforcement and global coordination risk allowing crypto’s role to expand, and calls for tighter regulation, better tracking, and stronger international cooperation to prevent digital assets from further enabling Russia’s war economy.

Fraud

Eleven Charged in Alleged Nationwide Marriage‑Fraud and Bribery Scheme

Federal prosecutors in the Middle District of Florida have unsealed an indictment charging 11 individuals with participating in a scheme which allegedly arranged sham marriages between US citizens, who were often military personnel, and Chinese nationals in order to obtain immigration benefits. According to the filing, participants staged photographs, coordinated payment plans for the US spouses, and in some cases attempted to bribe a Navy personnel office employee to issue unauthorised Department of Defense identification cards. Several related defendants, including former Navy service members, have already pleaded guilty in connected cases. All charged individuals are presumed innocent unless proven guilty.

AI Voice Cloning Fuels a Dangerous New Wave of Phone Scams

National Trading Standards has warned of a chilling escalation in phone fraud, with criminals now using AI to clone victims’ voices and fraudulently authorise direct debits without their knowledge. The scams often begin with seemingly harmless “lifestyle survey” calls which harvest personal, health, and financial information, which is then used to generate voice clones capable of deceiving banks and legitimate businesses. New data shows UK adults receive an average of seven scam calls or texts a month, while enforcement action under Operation Derdap has already blocked nearly 21 million scam calls and shut down 2,000 numbers in six months. Officials stress this is no longer a nuisance but a coordinated, sophisticated operation which disproportionately targets older and vulnerable consumers, urging the public to stay alert, check bank statements, and report suspicious activity.

National Fraud Squad Boosts Proactive Policing but Faces Staffing and Training Challenges

A Home Office‑commissioned evaluation of the National Fraud Squad finds that the £100 million programme has significantly strengthened law enforcement’s capacity to tackle serious fraud, driving a shift towards more proactive, intelligence‑led and collaborative investigations across the UK. The report concludes that NFS funding has enabled the creation of dedicated fraud teams, improved coordination between national and regional agencies, and delivered better outcomes for victims, but progress has been slowed by recruitment, training and retention difficulties, inconsistent understanding of the scheme, and challenges in ring‑fencing resources. While stakeholders broadly agree the NFS is meeting its aims, the evaluation highlights the need for clearer governance, more consistent communication, and better alignment of funding, training and performance measures to sustain its impact.

Money Laundering

MONEYVAL Highlights Serbia’s Progress but Flags Gaps in Tackling Money Laundering

A new MONEYVAL assessment finds that Serbia has strengthened its understanding of money‑laundering, terrorist‑financing, and proliferation‑financing risks through regular national risk assessments and more coordinated policy efforts, while also improving supervisory practices and beneficial‑ownership data controls. The report notes active international cooperation and rising money‑laundering convictions, but stresses that Serbia still needs more proactive cross‑border asset recovery, stronger focus on high‑level corruption and organised crime, and better coordination among domestic authorities. Terrorism‑financing risks are assessed as medium, with enforcement improving but hampered by high evidentiary thresholds and limited strategic coordination. Serbia has been placed under regular follow‑up and given a three‑year roadmap for recommended actions.

Other Financial Crime

CCRC refers Five City‑Trader Convictions After Supreme Court Ruling

The Criminal Cases Review Commission has referred the convictions of five former city traders back to the appeal courts after concluding that the same legal misdirections identified by the Supreme Court in the overturned LIBOR and EURIBOR cases of Tom Hayes and Carlo Palombo also undermined the safety of their verdicts. The traders are Alex Pabon, Jay Vijay Merchant, Jonathan Mathew, Philippe Moryoussef and Colin Bermingham. They had argued that their trials relied on directions now deemed incorrect, depriving juries of properly considering their defences. After reviewing each case in light of the Supreme Court judgment, the CCRC found no meaningful distinction between these convictions and those already quashed, prompting the referrals.

US Prosecutors Offer Companies Leniency for Cooperation in Criminal Probes

The US Attorney for Manhattan, Jay Clayton, has said federal prosecutors will expand incentives for companies which cooperate in criminal investigations, including the possibility of non‑prosecution agreements. Speaking at an industry conference, Clayton said the approach is designed to encourage faster cooperation, protect shareholders, and focus enforcement on individual wrongdoing, as the Justice Department scales back corporate crime cases and takes a narrower approach to laws such as the Foreign Corrupt Practices Act.

US Treasury Pledges Lighter‑Touch Regulation Focused on Growth and Stability

US Treasury Secretary Scott Bessent told the Senate Banking Committee that financial regulation should move away from what he called “regulation by reflex” and instead prioritise economic growth, security, and targeted risk prevention. Presenting the Financial Stability Oversight Council’s 2025 annual report, he criticised past regulatory focus on issues such as climate and reputational risk, arguing it distracted from core safety and soundness concerns and contributed to major bank failures in 2023. The report sets out four priorities, which are Treasury market resilience, cybersecurity, regulatory modernisation, and responsible use of AI, all of which are aimed at strengthening financial stability while reducing unnecessary regulatory burdens.