Ownership and control: insights from the call for evidence
OFSI would like to thank every respondent who offered their views on the call for evidence on the ownership and control Test in UK Financial Sanctions Regulations that closed on 20 April.
As part of the Review of Sanctions Implementation and Enforcement published in May 2025, HMG committed to delivering measures to provide further clarity on ownership and control. The call for evidence delivers on our commitment by reviewing in further detail concerns from industry by gathering targeted insights about the control test in financial sanctions legislation.
We focused on hypothetical control as a direct response to industry feedback, which has highlighted greater implementation challenges associated with the control element of the ownership and control test rather than the ownership element.
OFSI received 42 responses, with many providing valuable and in-depth insights.
Responses clearly communicated where hypothetical control appears most often in practice, reporting that it was most commonly encountered under the Russia regime and in cases involving state-linked entities, politically connected individuals, and trusts. The insights provided have helped to expand OFSI’s understanding of how frequently firms encounter hypothetical control scenarios and the impact on their business operations.
For example, respondents report that costs increase when there is need to make assessments on limited information. This includes enhanced due diligence, engaging external legal advice and delaying or escalating business decisions for senior review. A number of firms provided clear and quantifiable costs for these measures, which has further supported OFSI’s understanding of the impacts.
Many responses also set out clear examples of tools and legal concepts relevant to control assessments. It was noted that these can be helpful for understanding the nature of control, though not always reliable for implementing the test itself.
The responses to the call for evidence will play an important role in informing UK Government's ongoing work. While respondents expressed differing views on the most appropriate way to address reported challenges, the evidence provided will help support potential next steps.
In the meantime, firms are still expected (and required by law) to assess ownership and control in line with existing UK financial sanctions guidance.
The factors for establishing whether an entity is owned or controlled are set out in relevant UK sanctions regulations, including a schedule that provides rules for interpretation. However firms should also consult relevant guidance for support, such as:
As this remains an ongoing policy under review, we continue to monitor feedback we receive from our industry stakeholders and international partners on ownership and control, and will continue to explore our options to provide greater clarity to industry through established channels.
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