Sanctions enforcement risk has become more acute, according to one legal expert, after the Financial Conduct Authority (FCA) urged whistleblowers to come forward.

David Hamilton,white collar investigations expert at Pinsent Masons, said the FCA’s new reporting platform for sanctions breaches “expressly encouraged” employees to report their concerns on a “confidential and anonymous basis.”

He added: “Looking ahead, it seems certain that sanctions compliance will become an increasingly prevalent ground for regulatory enforcement action - particularly in cases where firms have failed to make appropriate notifications and the FCA has received intelligence through the platform from whistleblowers.”

The regulator’s new reporting platform allows authorised firms and their employees to voluntarily report breaches of sanctions as well as weaknesses in their internal sanctions policies and procedures. Reports can be submitted anonymously and are kept confidential by the FCA.

The FCA indicated that whistleblowers could share any suggestions that a firm has poor sanctions controls, as well as suspected or actual breaches of the sanctions regime and any methods used by firms or individuals to breach the sanctions regime. The FCA said it will consider whether the reports it receives require further action, adding that even instances where formal measures are not taken will inform how it develops policy and how it works with partners to enforce the UK’s sanctions regime.

Hamilton said: “...

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