OFSI Publishes Findings on Cryptoassets Used to Evade Sanctions

Key developments include:

➡️ Cryptoassets as a Sanctions Risk: OFSI highlights that sanctions enablers are increasingly using cryptoassets to move and hide illicit funds, but that blockchain transactions leave traceable data;

➡️ Multi-Agency Action: OFSI has partnered with the Crypto Cash Fusion Cell (CCFC) - a pilot initiative bringing together the NCA, Metropolitan Police Service, HMRC, FCA, City of London Police and OFSI;

➡️ Public-Private Collaboration: The operation involved close cooperation with private sector partners, including blockchain analytics firms, to support real-time intelligence sharing and operational outcomes; and

➡️ Clear Regulatory Message: OFSI emphasises that using cryptoassets to evade sanctions will be treated no differently from the misuse of traditional currencies.

✅ Cryptoasset firms and financial institutions should ensure their sanctions controls are aligned with OFSI requirements, as UK authorities increase coordinated action against crypto-enabled sanctions evasion.