Major updates to the UK’s Money Laundering Regulations are now in force. These changes alter how regulated businesses handle compliance, risk checks, and record-keeping.
The new rules took effect on 30 June 2026. They aim to cut unnecessary red tape while maintaining strong checks for high-risk financial crimes. The government is also moving forward with a plan to streamline how professional services firms face anti-money laundering (AML) supervision.
If your business is affected, you need to review your current AML procedures immediately.
What Has Changed Under the New AML Rules?
1. High-Risk Countries and Enhanced Due Diligence (EDD)
Automatic EDD checks now apply only to countries on the Financial Action Task Force (FATF) “Call for Action” list (the blacklist). If you deal with countries on the FATF “monitored” list (the grey list), you no longer need automatic EDD. Instead, you must assess the actual risk level and apply EDD only when you identify a high risk.
2. Clearer Rules for Unusual Transactions
The law now specifically targets transactions that are “unusually complex or unusually large”. This change requires you to focus on normal customer activity. Complexity or size alone does not automatically trigger an EDD check unless it is unusual for that specific client.
3. Fixed Pound Sterling Thresholds
The UK government replaced Euro-based limit amounts with fixed Pound Sterling (£) amounts. This makes value limits easier for UK firms to track without worrying about currency conversion rates.
4. Specific Industry Updates
Targeted updates now cover:
- Pooled Client Accounts: Firms must document underlying risk assessments.
- Trust Services: Rules clarify registration requirements for non-UK trusts holding UK land and grant exemptions for certain low-risk trusts.
- Company Formations: HMRC guidelines confirm stricter checks for selling off-the-shelf companies, an area closely tied to company formation compliance.
Who Needs to Pay Attention?
You must review these updates if you run a regulated firm, such as:
- Accountancy and tax advisory practices
- Law firms and conveyancers
- Trust or company service providers
Standard businesses do not need a full AML compliance setup unless they perform regulated activities. However, you will notice these changes when working with your accountants, banks, or legal advisers.
What Happens If You Ignore the Changes?
You cannot rely on old AML procedures that do not match current law.
Failing to meet these rules can lead to heavy fines and legal enforcement action. Regulators like HMRC publicly name non-compliant businesses, which can damage your commercial reputation, and unresolved gaps can quickly escalate into a full HMRC tax investigation.
To protect your business, review these five core areas today:
- Practice-wide risk assessments
- Customer due diligence (CDD) steps
- High-risk check (EDD) triggers
- Internal records and compliance systems
- Staff training guidelines
A Major Supervision Change Is Coming
The June 2026 rule changes are only the first step. The UK Government has confirmed that the Financial Conduct Authority (FCA) will become the Single Professional Services Supervisor for AML and counter-terrorist financing.
The FCA will take over supervision duties currently split across 22 separate professional bodies.
Important: Do not confuse future FCA changes with the rules already in force today. The FCA transition will take time to roll out. You must follow current supervisory rules while preparing for future updates.
What Should Your Business Do Now?
Do not wait for the FCA transition. Your business must comply with the rules that are active right now, and if you hold undisclosed offshore assets, addressing them through routes such as the Worldwide Disclosure Facility now can help reduce future risk.
At Lanop Business & Tax Advisors, we help UK business owners navigate complex tax, accounting, and compliance updates. We make sure your risk checks and company records stay fully compliant so you can focus on growing your business.
Need help updating your compliance procedures? Contact Lanop’s team today for a free consultation and get expert, hands-on support to keep your AML procedures fully compliant.
