OFSI issues disclosure notice against Vanquis Bank Limited

The Office of Financial Sanctions Implementation (OFSI) has issued a disclosure notice against Vanquis Bank Limited for breaching Counter-Terrorism Sanctions Regulations. 

Vanquis, a UK financial services provider regulated by the FCA, failed to restrict a designated person’s account for eight days after their sanctioning. 

This allowed the designated person to withdraw cash and process a transaction, breaching rules against making funds available to sanctioned individuals. 

OFSI rated the breach as moderately severe but not serious enough for a fine. A public disclosure was deemed the appropriate response. 

Companies and individuals must comply with sanctions regulations, ensuring no funds are made available to designated persons. 

Vanquis Bank’s delay in restricting a designated person’s account allowed them to access funds, breaching these rules. 

This case highlights the need for strong sanctions screening processes and contingency plans to ensure compliance and prevent delays.