Money Laundering and Terrorist Financing (Amendment) Regulations 2026

The regulations implement HM Treasury’s response to its 2024 review of the effectiveness of the 2017 framework. They make targeted changes rather than replacing the existing Money Laundering Regulations. The stated objectives are to improve proportionality and clarity, close identified gaps, maintain alignment with Financial Action Task Force standards, and coordinate the AML and counter-terrorist-financing system more effectively.

Across the regulated sector, the instrument narrows mandatory enhanced due diligence linked to jurisdictions so that the automatic trigger focuses on countries on the FATF “Call for Action” list. It also changes the transaction trigger from “complex or unusually large” to “unusually complex or unusually large,” in each case assessed against the nature of the transaction. Euro-denominated thresholds are replaced with specified sterling figures, including calibrated amounts where a direct one-to-one conversion could fall below FATF standards.

From February 1, 2027, a UK cryptoasset exchange provider or custodian wallet provider entering a correspondent relationship with a similar provider from a third country must conduct additional checks. These include understanding the respondent’s business, reputation, supervision and AML controls; obtaining senior-management approval; documenting responsibilities; and addressing customers with direct access to the correspondent’s accounts. The rule also prohibits correspondent relationships with shell banks and requires enhanced measures where another institution is known to permit shell-bank use.

The substituted Schedule 6B reforms change-in-control rules for FCA-registered cryptoasset businesses. Initial elements take effect on June 30, 2026, while the remaining purposes take effect on October 25, 2027. The framework distinguishes businesses registered before and after the new Financial Services and Markets Act cryptoasset regime begins, broadening notification coverage for legacy registrations and aligning later registrations more closely with the FSMA controller concept.

• Pooled client accounts: new risk-based duties address account purpose, expected use, underlying-customer information and record keeping, while preserving protections for legally privileged information.
• Bank insolvency: a new route permits qualifying customers transferred after a bank insolvency to access accounts before all due-diligence steps are complete, subject to conditions and safeguards.
• FCA notifications: an FCA-supervised authorised person must report a material change or discovered inaccuracy in previously supplied information within 30 days.
• Trust transparency: the Trust Registration Service changes extend coverage to specified non-UK trusts holding UK land and add exemptions for certain low-value or low-risk trusts and estate-related arrangements.
• Corporate services: selling an “off-the-shelf” firm is brought within regulated trust or company service-provider activity.
• Public-body coordination: information-sharing and cooperation provisions are expanded, including links involving Companies House.

The regulations extend across England and Wales, Scotland and Northern Ireland. HM Treasury, the FCA, HM Revenue & Customs and other AML supervisors retain roles under the amended framework. Most provisions commence 21 days after the instrument was made, but the crypto correspondent rule and the full change-in-control transition follow the later dates above. HM Treasury’s explanatory memorandum states that the next comprehensive review of the 2017 Money Laundering Regulations is due in 2027.

This profile is a legal-reference summary of S.I. 2026/621 as of June 19, 2026. The operative text should be read together with the 2017 Regulations and the commencement provisions applicable on the relevant date.