Changeflow GovPing Banking & Finance UK OFSI Strategy 2026-2029 Based on PERC Framework
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UK OFSI Strategy 2026-2029 Based on PERC Framework

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Summary

The UK Office of Financial Sanctions Implementation (OFSI) has published its strategy for 2026-2029, structured around the PERC framework: Promote, Enable, Respond, and Change. The strategy outlines targeted engagement campaigns for priority sectors, aims to close 50% of licensing cases within six months, and commits to submitting 90% of new enforcement investigations for decision within 18 months. OFSI also targets quarterly joint output with international partners and enhanced digital services including AI-enabled workflows.

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What changed

The UK OFSI published its 2026-2029 strategy document, replacing or superseding any prior strategic framework. The strategy is organized around four pillars: Promote (shaping expectations through targeted sector campaigns and international partnerships, targeting quarterly co-branded outputs), Enable (streamlining licensing with a six-month closure target for 50% of cases, modernizing digital services including AI-enabled workflows), Respond (prioritizing evidence-led enforcement with 90% of investigations submitted for decision within 18 months, targeting intelligence-originated case outcomes), and Change (embedding lasting behaviour change through feedback loops and practical implementation support).

Financial institutions subject to UK financial sanctions must anticipate increased engagement from OFSI under the Promote pillar, faster licensing decisions under the Enable pillar, and more proactive enforcement timelines under the Respond pillar. Firms should review their sanctions compliance programmes against OFSI's stated priorities and consider early engagement with OFSI on complex scenarios, as the strategy explicitly encourages and rewards such proactive outreach. The digital transformation commitments may also affect how firms interact with OFSI for reporting and licensing.

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Apr 20, 2026

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April 20, 2026

UK OFSI strategy for 2026–2029

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The UK Office of Financial Sanctions Implementation (OFSI) has published its strategy for 2026–2029. The strategy is based around the "Promote, Enable, Respond and Change" (PERC) framework:

  • Promote: To shape expectations and set the standard, OFSI will run targeted campaigns for priority sectors; publish clear guidance products and assessments showing what non-compliance is and how to avoid it; and work with domestic and international regulators to promote consistency. "Promote" key performance indicators (KPIs) include sector-specific engagement campaigns and delivering joint or co-branded public output (such as joint guidance, public statements, case studies or advisories) with international partners on a quarterly basis.
  • Enable: OFSI will remove friction for legitimate activity and support sanctions compliance behaviour that is fast, predictable and scalable by encouraging early engagement from firms to address risks or uncertainties, providing direct, practical compliance advice on complex scenarios, and maintaining an effective and regularly updated licensing offer with high, publicised service standards. Engagement will be modern and digital by default, including online services, reporting and forms, supported by enhanced data use, data sharing and AI enabled workflows. The "enable" KPI is to close 50% of licensing cases within six months.
  • Respond: OFSI will protect the system through visible, timely and proportionate enforcement by prioritising evidence led cases that target the highest risks. It will use analytics to identify networks, typologies and repeat behaviours, deploy its full toolkit across financial sanctions, and ensure public enforcement outcomes are fast and as impactful as possible. OFSI will also robustly defend litigation, strengthen the legislative framework, apply best practice case management, and work closely with UK regulators and enforcement partners to ensure complementary action. "Respond" KPIs include submitting 90% of new enforcement investigations for decision within 18 months of commencement of investigation, and increasing intelligence-originated case outcomes in financial year 2027/28 and 2028/29.
  • Change: To embed lasting behaviour changes across the financial sanctions' system and all of its actors, OFSI will use feedback loops (including guidance and lessons learned, and learning from industry and government partners), ensure all new and updated sanctions enable practical implementation, both domestically and internationally, and use AI-enabled workflows to enhance its services. "Change" KPIs include submitting 90% of new enforcement investigations for decision within 18 months of commencement and increasing intelligence led case outcomes in financial year 2027/28 and 2028/29. [View source.]

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Classification

Agency
A&O Shearman
Published
April 20th, 2026
Instrument
Notice
Branch
Executive
Legal weight
Non-binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Banks Financial advisers Investors
Industry sector
5221 Commercial Banking
Activity scope
Sanctions compliance Licensing applications Enforcement response
Geographic scope
United Kingdom GB

Taxonomy

Primary area
Sanctions
Operational domain
Compliance
Compliance frameworks
OFAC Sanctions
Topics
Financial Services Export Controls

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