Episode 256

5th June – 7th June 2026

Sanctions

Tech Executive Arrested on US Charges Over Alleged Sanctions Violations

US authorities have announced the arrest of the chief executive officer of an Iran-based technology company on federal charges related to the alleged procurement and supply of US-origin equipment to Iran’s nuclear and military sectors. According to the Department of Justice, the charges centre on claims that the individual participated in schemes designed to circumvent US export controls and sanctions, facilitating the transfer of restricted technology despite legal prohibitions. Officials state that such actions, if proven, would represent violations of longstanding US laws aimed at limiting the spread of sensitive technologies to sanctioned entities. The case forms part of broader enforcement efforts targeting alleged sanctions evasion and illicit procurement networks.

OFAC Releases Introductory Guide to Sanctions Framework

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury has published a new introductory guide outlining its role, authorities, and the fundamentals of US economic and trade sanctions programmes. The document provides an overview of OFAC’s mission, including the administration and enforcement of sanctions designed to support national security and foreign policy objectives, as well as key concepts such as designated persons, prohibited transactions, and licensing processes. It is intended as an accessible resource for businesses, legal practitioners, and other stakeholders seeking to better understand compliance obligations and the structure of US sanctions regimes, reflecting ongoing efforts to improve transparency and awareness in this area.

UK Updates Russia Sanctions List with One Correction and One Revocation

The UK Foreign, Commonwealth and Development Office has updated the Russia sanctions list with an administrative correction to the designation of Liran Cohen, who remains subject to asset freeze, travel ban, trust services restrictions, and director disqualification, and the revocation of sanctions on LLC “RBRU Specialised Depository,” which is no longer designated following a review. The notice reiterates compliance obligations for firms handling frozen assets and outlines enforcement expectations under the Russia (Sanctions) (EU Exit) Regulations 2019.

Fraud

Sri Lanka launches nationwide push to help citizens “Be Scam Proof” as financial fraud evolves

Sri Lanka’s central bank has launched a month‑long public awareness drive aimed at helping citizens recognise and resist financial scams, warning that fraud is thriving in the gap between rapid digital adoption and uneven financial literacy. In a keynote address at the campaign’s launch in Colombo, Central Bank Governor Dr P. Nandalal Weerasinghe said the country is facing “two extremes at once”: rural communities unsure how to distinguish licensed institutions from illegal schemes, and digitally confident urban users still falling for phishing links and sharing one‑time passwords. He noted that global evidence from bodies such as the World Bank suggests scams not only drain household savings but also weaken trust in formal finance, a trend which may slow economic recovery. Illegal plantation schemes, pyramid operations and high‑return investment pitches continue to flourish, particularly during periods of uncertainty when people are more vulnerable. The campaign, branded ‘Be Scam Proof’, brings together media organisations, financial institutions, telecom operators, law‑enforcement agencies, and online creators in what the governor described as a “coordinated national defence.” Alongside posters, short films and a theme song, the initiative encourages citizens to question suspicious promises and verify information before acting. Dr Weerasinghe stressed that awareness efforts must extend beyond a single month and evolve as scammers adopt new tactics, adding that the central bank intends to keep working with partners to reach communities “in the farthest corners of the economy.”

US Authorities Report Outcomes of Coordinated Action Against Scam Operations

The US Department of Justice has announced the results of a coordinated enforcement initiative, known as “Disruption Week,” conducted by the Scam Center Strike Force in collaboration with private industry partners. The operation focused on identifying and disrupting networks associated with fraudulent schemes, including those targeting individuals through online and telecommunications channels. Officials reported a range of actions taken during the initiative, such as domain seizures, financial account restrictions, and coordination with technology companies to limit the reach of suspected scam operations. The effort forms part of broader measures to address financial crime and protect consumers, highlighting the role of public-private partnerships in responding to increasingly sophisticated fraud activities.

Bribery and Corruption

UK Official Highlights Global Efforts to Combat Corruption

The Director of the Serious Fraud Office, Graham McNulty, has addressed the Global Anti-Corruption, Ethics and Compliance Conference in New York, outlining ongoing global efforts to strengthen transparency, accountability, and enforcement against illicit financial practices. In the speech, the director emphasised the importance of international cooperation, information sharing, and robust legal frameworks to address cross-border corruption risks, noting the evolving challenges posed by complex financial systems and emerging technologies. The remarks also highlighted the UK’s continued commitment to supporting multilateral initiatives and partnerships aimed at preventing corruption and promoting good governance, while encouraging both public and private sector actors to enhance compliance measures and uphold ethical standards.

Other Financial Crime

ICO Secures £118,000 Confiscation Orders in RAC Data‑Theft Case

The UK Information Commissioner’s Office (ICO) has confirmed that two former RAC employees have been ordered to repay a combined £118,852 after unlawfully accessing and selling almost 30,000 lines of personal data. The confiscation orders, issued under the Proceeds of Crime Act 2002, follow earlier suspended prison sentences and community orders for offences under the Computer Misuse Act 1990 and the Data Protection Act 2018. The ICO said the outcome demonstrates its commitment to using its full enforcement powers to ensure individuals do not profit from criminal misuse of personal information, noting that one defendant has already paid the full amount while the other faces an 18‑month custodial sentence if payment is not made within three months.

UK Prosecutors Pivot to Broaden Focus on Shifting Landscape of Organised Crime

The Crown Prosecution Service (CPS) has published its Serious and Economic Organised Crime Strategy 2030, marking a structural departure from its previous, more compartmentalised approach to financial offences. Set to replace the Economic Crime 2025 blueprint, the updated framework appears to recognise that modern criminal networks no longer operate in neat silos. Instead, poly-criminality, which is where large-scale fraud frequently overlaps with cyber-enabled human trafficking, has become the norm. The new strategy is likely to shift how complex cases are managed over the next several years, though executing these ambitions across an already stretched justice system might prove challenging.

Serious economic and organised crime drains an estimated £47 billion from the UK economy annually. Catching the perpetrators, however, is rarely straightforward. Criminals increasingly blend their activities, mixing digital scams with physical exploitation. South-East Asian scam compounds offer a glaring illustration of this trend. Trafficked foreign nationals are routinely lured abroad with the promise of legitimate work, only to be held captive and forced to orchestrate romance scams under severe duress. Financially motivated sextortion rings also feed off these illicit factories, targeting vulnerable teenagers and young men with devastating consequences.

Tackling this interwoven web requires a much wider lens. By moving beyond a narrow definition of economic crime, the CPS seems prepared to manage cases which sprawl across international borders and involve varied offences, from money laundering to hostile state activity. Two senior officials, the Director of Public Prosecutions Stephen Parkinson and Director General for Legal Delivery Grace Ononiwu, frame this pivot as essential. They point to the necessity of stripping offenders of their financial gains at the very start of investigations. If the primary incentive is removed, criminal capability is severely disrupted.

While the ambition to seize assets earlier is logically sound, observers might wonder whether frontline law enforcement holds the immediate resources needed to trace these heavily disguised funds before they vanish offshore. The sheer volume of digital material in modern cases often bogs down legal proceedings. Recognising this friction, the SEOC 2030 strategy relies heavily on technology and artificial intelligence to manage overwhelming data loads. Automating parts of the disclosure process or using digital tools to sift through terabytes of phone records could speed up decision-making. Still, the introduction of largely untested AI integrations in the courtroom carries its own set of risks, ranging from algorithmic bias to the mishandling of sensitive digital evidence.

Behind the high-level policy goals, the framework focuses heavily on capability and anticipation. Investigators will be encouraged to take a more inquisitive, proactive stance from day one. Another core element involves spotting emerging national threats rather than simply reacting to them after the fact. Achieving this will require tighter collaboration with regional police forces and international counterparts, functioning as a unified system rather than a collection of separate agencies.

Ultimately, the CPS strategy paints a picture of an adaptive prosecution service trying to outpace an increasingly sophisticated underworld. The real test is likely to arrive not in policy documents, but in the courtrooms. Whether the 2030 vision translates into higher conviction rates for complex multinational networks depends entirely on how effectively these technological and cultural shifts are implemented on the ground.

Cybercrime

Weil Reportedly Pays Up to $20 Million to Halt Release of Stolen Client Data

Legal news website, Legal Cheek, reports that US law firm Weil, Gotshal & Manges, is reported to have paid between $18 million and $20 million to the cyber extortion group Luna Moth to prevent the publication of confidential client documents stolen during a recent breach, according to The Insurer. The firm said it activated response protocols, contained the incident, and engaged third‑party cybersecurity specialists after discovering that a limited number of client files had been uploaded to an external cloud storage site. Weil stated that forensic reviews found no access to its internal network and no disruption to operations, and that affected clients and law enforcement have been notified. The incident follows a similar attack earlier this year on Jones Day, in which hackers reportedly accessed files relating to 10 clients.

ESAs Report Highlights Rising Cross‑Border ICT Risks Under DORA

The European Supervisory Authorities have released their first annual assessment of major ICT‑related incidents reported under the Digital Operational Resilience Act, noting that one third of the 3,383 incidents logged in 2025 had cross‑border effects, reflecting the growing interconnectedness of financial services across shared infrastructures. While most incidents stemmed from system failures and external events, with limited direct impact on clients, the authorities stressed the need for stronger third‑party risk management and closer oversight of outsourced services. Only 10% of incidents were cybersecurity‑related, but the ESAs warned that the rapid evolution of advanced AI‑driven tools highlights the importance of maintaining high cybersecurity standards to safeguard operational resilience across the EU financial sector.

UK Regulator Warns of Escalating AI‑Driven Cyber Risks to Banks, FT Reports

The Financial Times reports that Sam Woods, outgoing chief executive of the Bank of England’s Prudential Regulation Authority, has warned that rapidly advancing AI models are exposing significant vulnerabilities in UK banks’ IT systems, heightening cyber‑security risks amid rising geopolitical tensions. Woods said new frontier models, such as Anthropic’s Claude Mythos Preview, which can identify hidden software weaknesses and could be misused for hacking, pose a growing threat as access expands to more organisations, including some UK lenders. He told the FT that banks must urgently accelerate patching cycles, reassess high‑risk open‑source components and reprioritise technology programmes to address emerging cyber exposures. Woods added that the pace of AI development makes direct regulation of banks’ use of the technology “not plausible” at present, though the PRA will become concerned if firms begin applying AI to core capital or risk‑taking decisions.