Sanctions are among the most powerful tools available to the U.S. and UK governments in advancing our respective foreign policy and national security interests. In January 2026, as part of the continuing Enhanced Partnership, the HM Treasury’s Office of Financial Sanctions Implementation (OFSI) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) met for the latest in-person exchange in London.
The week-long strategic dialogue focused on how we use our respective authorities to meet foreign policy and national security demands, such as tightening or lifting sanctions, adopting new technology, and highlighting enforcement efforts. The exchange reinforced our shared commitment to ensuring sanctions are administered in a way that is as effective and clear as possible to the public.
Building on this cornerstone goal, we are publishing additional joint guidance, The U.S. and UK Economic Sanctions Authorities: A Comparative Overview. The guidance compares key aspects of U.S. and UK sanctions regimes, identifying similarities and differences on topics such as sanctions lists, licenses, as well as recordkeeping and reporting requirements. This new publication focuses on ensuring that those who are required to comply with our sanctions have a clear and strong understanding of how to do so.
Shared Objectives, Evolving Priorities
Sanctions remain at the forefront of our respective governments’ response to geopolitical events in an increasingly complex world. While we continue to clarify and communicate existing rules, practices, and expectations, evolving priorities shape our work and often require new approaches, measures, or even new sanctions regimes.
In response to dynamic demands, OFAC and OFSI continue to use a range of tools to ensure sanctions remain effective and aligned with shared objectives. For instance, OFAC and OFSI identified the following opportunities to work together to improve the efficacy of our respective sanctions regimes:
- evaluate our parallel mechanisms to enable us to rapidly increase sanctions pressure;
- harness lessons learned from the novel restrictions developed as part of our coordinated response to Russia’s illegal invasion of Ukraine to apply to other scenarios;
- identify typologies and economic impact of sanctions targets to more effectively disrupt concerning behavior, such as in relation to the shadow fleet;
- review and enhance processes necessary to dismantle sanctions regimes in a structured way, such as in Syria; and
- translate the lessons learned and insights from our global sanctions regimes, such as counternarcotics or illegal migration, to produce new tools and resources that can be applied across shared sanctions regimes.
A coordinated approach to developing and deploying these measures remains essential to ensuring sanctions have the most impact across jurisdictions.
New Tools, Better Systems
Measuring the real-world impact of sanctions is critical to demonstrating effectiveness. During our recent exchange, OFAC and OFSI explored the methodologies and technological tools available to assess the disruptive effect of sanctions. Quantitative analysis is not only vital to understanding how to target malign actors more effectively, but also to assess where additional mitigation, such as licences or exceptions, are necessary. Investing in new tools that improve impact analysis is essential to OFAC and OFSI implementing sanctions more effectively. For our stakeholders, keeping pace with technological advancements allows us to more effectively utilise different data sources, whether it be stakeholder feedback, licence application information, or private sector-developed data to resolve emergent problems affecting global industries.
Similarly, we are always conscious of the impact sanctions can have on our stakeholders and their compliance teams. To reduce the burden of sanctions while meeting increased demands, we continue to modernise systems for applying for licences, disclosing violations, submitting reports, or seeking guidance. This includes sharing our experiences using artificial intelligence to support our functions going forward. We expect the use of emerging technologies to automate routine tasks or support information analysis to ultimately lead to improved decision-making, provide clearer guidance for industry seeking support, and deliver improved public service to our stakeholders.
Into the Future
As our Enhanced Partnership enters its fifth year, much has changed, but our core mission remains the same. Sanctions should deliver maximum impact, minimise unintended consequences, and be easily understood and implemented. This most recent exchange builds on our strong foundations: regular engagement, information-sharing facilitated through the OFAC-OFSI Memorandum of Understanding, and joint industry engagements throughout the year. As the two largest implementing sanctions authorities, close contact on pressing matters impacting both of our jurisdictions remains crucial. We look forward to our next exchange this autumn in Washington DC.
Giles Thomson, Director Economic Crime & Sanctions, The Office of Financial Sanctions Implementation, HM Treasury
Bradley Smith, Director, Office of Foreign Assets Control, U.S. Department of the Treasury