Memorandum of Understanding between the Office of Financial Sanctions (OFSI) and the Financial Conduct Authority [pdf]

The Memorandum of Understanding (MoU) between the Office of Financial Sanctions Implementation (OFSI) and the Financial Conduct Authority (FCA) establishes a framework for cooperation and information exchange. Effective from the date of signature, this MoU replaces a previous agreement dated April 2019 and governs the collaborative efforts of the two entities in carrying out their respective functions. Notably, it clarifies that the MoU is not a legally binding contract and does not create enforceable obligations between the parties, nor does it impede compliance with legal requirements or the exercise of discretion.
The roles and responsibilities are delineated, with HM Treasury, specifically OFSI, holding authority over financial sanctions and relevant maritime services sanctions. OFSI’s statutory information-sharing powers under the Sanctions and Anti-Money Laundering Act (2018) are outlined, including provisions for sharing information with the FCA. The FCA, responsible for financial services regulation and supervision of FCA-supervised firms, may share information relevant to OFSI’s work.
The MoU emphasizes data protection and confidentiality, with both parties committing to safeguarding shared information and complying with data protection legislation. Information sharing and cooperation are facilitated, allowing the parties to share relevant information on a regular basis or upon request. The permissible uses of information include regulatory functions and enforcement by the FCA and civil and criminal investigations related to financial sanctions by OFSI. The operational agreement accompanying the MoU is subject to regular review, ensuring adaptability. The MoU, operational agreement, and related processes aim to enhance collaboration in addressing financial sanctions, ensuring compliance, and combating financial crime.