The Money Laundering and Terrorist Financing (Amendment) Regulations 2026

Made: 9th June 2026

Coming into force in accordance with regulation 1

The Treasury make these Regulations in exercise of the powers conferred by sections 49 and 54(2) of, and Schedule 2 to, the Sanctions and Anti-Money Laundering Act 2018[^f00001].

In accordance with section 55(5)(d) of the Sanctions and Anti-Money Laundering Act 2018 a draft of these Regulations has been laid before Parliament and approved by a resolution of each House of Parliament.

Part 1 — Introduction

Citation, commencement and extent

1

• (1) These Regulations may be cited as the Money Laundering and Terrorist Financing (Amendment) Regulations 2026.

• (2) Subject to paragraphs (3) to (5), these Regulations come into force 21 days after the day on which these Regulations are made.

• (3) This regulation comes into force on the day after the day on which these Regulations are made.

• (4) Regulation 20 (insertion of regulation 34A (enhanced customer due diligence: cryptoasset exchange providers, custodian wallet providers and correspondent relationships)) and regulation 36(b) (amendment of Schedule 6 (meaning of “relevant requirement”): insertion of reference to regulation 34A) come into force on 1st February 2027.

• (5) Regulation 37 (substitution of Schedule 6B (changes in control of registered cryptoasset businesses)) takes effect—

• (a) 21 days after the day on which these Regulations are made for the purposes of substituting paragraphs 1, 2 and 5 of new Schedule 6B for the existing Schedule 6B; and

• (b) for all other purposes on 25th October 2027.

• (6) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Part 2 — The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Amendment of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

2

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017[^f00002] are amended in accordance with regulations 3 to 37.

Amendment of regulation 3 (general interpretation)

3

In regulation 3[^f00003]—

• (a) in paragraph (1), after the definition of “credit institution”, insert—

• “cryptoasset business” has the meaning given by regulation 64B;

• (b) in paragraph (2)(a), for “euros” substitute “sterling”;

• (c) in paragraph (2)(b)—

• (i) for “sterling (or any other currency)” substitute “another currency”;

• (ii) for “euros”, in both places it occurs, substitute “sterling”;

• (iii) omit “sterling or”;

• (iv) for “the euro” substitute “sterling”.

Amendment of regulation 4 (meaning of business relationship)

4

In regulation 4(2)[^f00004], after “services described in regulation 12(2)(a),”, insert “(ab),”.

Amendment of regulation 8 (application)

5

In regulation 8[^f00005], after paragraph (3), insert—

(3A) Regulation 29 applies to a customer provided with a pooled account (within the meaning of paragraph (10) of that regulation) by a relevant person.

Amendment of regulation 10 (credit institutions and financial institutions)

6

In regulation 10(2)(b)[^f00006], after “long-term insurance”, insert “other than a reinsurance contract”.

Amendment of regulation 12 (independent legal professionals and trust or company service providers)

7

In regulation 12[^f00007]—

• (a) in paragraph (2), after sub-paragraph (a), insert—

(ab) selling an off-the-shelf firm;

• (b) after paragraph (2), insert—

(3) In this regulation, an “off-the-shelf firm” means a firm that either— (a) does not carry on business; or (b) carries on business but such business is not the main activity carried on by the trust or company service provider.

Amendment of regulation 13 (estate agents and letting agents)

8

In regulation 13(4)(b)(ii)[^f00008], for “10,000 euros” substitute “£10,000”.

Amendment of regulation 14 (high value dealers, casinos, auctions platforms and art market participants)

9

In regulation 14[^f00009], for “10,000 euros”, in each place it occurs, substitute “£10,000”.

Amendment of regulation 15 (exclusions)

10

In regulation 15—

• (a) in paragraph (1)(c), for “or 40 to 49” substitute “, 40 to 49 or 58”;

• (b) in paragraph (3)(b), for “1,000 euros” substitute “£1,000”.

Amendment of regulation 19 (policies, controls and procedures)

11

In regulation 19(4)(a)(i)(aa), for “complex or unusually large” substitute “unusually complex or unusually large in each case given the nature of the transaction”.

Amendment of regulation 19A (policies, controls and procedures in relation to proliferation financing)

12

In regulation 19A(4)(a)(i)(aa)[^f00010], for “complex or unusually large” substitute “unusually complex or unusually large in each case given the nature of the transaction”.

Amendment of regulation 23 (requirement on authorised person to inform the FCA)

13

In regulation 23, after paragraph (3), insert—

(3A) If, at any time after an authorised person whose supervisory authority is the FCA (“A”) has provided the FCA with any information under this regulation— (a) there is a material change affecting any matter contained in that information; or (b) it becomes apparent to A that the information contains an inaccuracy, then A must provide the FCA with details of the change or a correction of the inaccuracy within 30 days beginning with the date of the occurrence of the change or the discovery of the inaccuracy.

Amendment of regulation 27 (customer due diligence)

14

In regulation 27[^f00011]—

• (a) in paragraph (1)(b), for “1,000 euros” substitute “£800”;

• (b) in paragraph (2), for “15,000 euros” substitute “£12,000”;

• (c) in paragraph (3), for “10,000 euros” substitute “£10,000”;

• (d) in paragraph (5), for “2,000 euros” substitute “£2,000”;

• (e) in paragraph (7), for “2,000 euros” substitute “£2,000”;

• (f) in paragraph (7A)—

• (i) in the opening words, insert “occasional” after “any”;

• (ii) in sub-paragraph (ii), for “10,000 euros” substitute “£10,000”;

• (g) in paragraph (7C)(a)—

• (i) insert “occasional” after “any such”;

• (ii) for “or series of linked transactions,” substitute “whether executed in a single operation or in several operations which appear to be linked,”;

• (iii) for “10,000 euros” substitute “£10,000”;

• (h) in paragraph (7C)(b), for “10,000 euros” substitute “£10,000”;

• (i) in paragraph (7E), for “1,000 euros” substitute “£800”.

Amendment of regulation 29 (additional customer due diligence measures: credit institutions and financial institutions)

15

In regulation 29[^f00012], after paragraph (9), insert—

(10) Paragraphs (11) to (18) apply if the relevant person provides a customer with a new account into which monies are pooled (“pooled account”) on or after the day on which this paragraph comes into force. (11) When providing a customer with a pooled account, the relevant person must— (a) take reasonable measures to understand the purpose of the pooled account and how the customer proposes to use it; (b) take steps to be satisfied that the purpose and proposed use under sub-paragraph (a) is consistent with the relevant person’s knowledge of the customer, the customer’s business and risk profile, and must conduct updated customer due diligence measures where it is not so satisfied; and (c) once satisfied under sub-paragraph (b), assess the level of risk of money laundering and terrorist financing associated with the customer using the pooled account and take reasonable steps to manage and mitigate the risks arising from that use by the customer. (12) In making an assessment under paragraph (11)(c), the relevant person must consider, among other things, the appropriateness of imposing controls on the pooled account to manage and mitigate the risks. (13) The relevant person must be able to demonstrate to its supervisory authority that the extent of the measures it has taken to satisfy the requirements under paragraphs (11) and (12) is appropriate in view of the risks of money laundering and terrorist financing. (14) When a customer has a pooled account with a relevant person, the customer must make available to the relevant person, on request from the relevant person, information on the identity of the persons on whose behalf monies are held in the pooled account and information on the identity of any beneficial owners of those persons. (15) A customer which is provided with a pooled account by a relevant person must maintain accurate and up-to-date records in writing of all the monies that are paid into and out of the pooled account for a period of five years beginning, in the case of each payment into or out of the account, on the date on which the customer knows, or has reasonable grounds to believe, that the payment is complete. (16) A customer of the relevant person must on request by any law enforcement authority provide information about itself and the management and use of any pooled account it has with the relevant person to that law enforcement authority. (17) A customer is not required under paragraph (13), (14) or (16) to provide information which that person would be entitled to refuse to provide on grounds of legal professional privilege in proceedings in the High Court (or, in Scotland, on the ground of confidentiality of communications in the Court of Session). (18) A disclosure made under paragraph (13), (14) or (16) is not to be taken to breach a duty of confidentiality owed by a professional legal adviser to a client of the adviser or any other restriction, however imposed, on the disclosure of information.

Amendment of regulation 30 (timing of verification)

16

In regulation 30—

• (a) in paragraph (1), for “This”, substitute “Subject to paragraph (1A), this”;

• (b) after paragraph (1), insert—

(1A) This regulation does not apply to a credit institution in relation to an insolvent bank customer where regulation 30ZA applies.

• (c) after paragraph (7), insert—

(8) In this regulation, “insolvent bank customer” has the meaning given in regulation 30ZA(5).

Insertion of regulation 30ZA (insolvent bank customers)

17

After regulation 30, insert—

(30ZA) (1) Subject to paragraphs (2) and (3), a credit institution may permit an insolvent bank customer to open an account and transact from it before completing customer due diligence measures. (2) Before permitting an insolvent bank customer to open an account and transact from it under paragraph (1), the credit institution must— (a) identify the customer in accordance with regulation 28(2)(a); and (b) where applicable, identify a person purporting to act on the customer’s behalf and verify that such person is authorised so to act in accordance with regulation 28(10)(a) and (b). (3) After permitting an insolvent bank customer to open an account and transact from it under paragraph (1), the credit institution must— (a) apply the other customer due diligence measures required by regulation 28 as soon as practicable; and (b) if it becomes apparent that any of the situations or cases set out in regulation 33(1) apply, carry out no further transactions from the insolvent bank customer’s account until it has completed the customer due diligence measures required by regulation 28, with the exception of regulation 28(11). (4) For the purposes of this regulation, a credit institution is to be treated as identifying an insolvent bank customer that is a body corporate if the credit institution— (a) obtains the information listed in regulation 28(3)(a); and (b) where the insolvent bank customer is not a company which is listed on a regulated market— (i) takes reasonable measures to determine the information listed in regulation 28(3)(b); and (ii) identifies the beneficial owner where the customer is beneficially owned by another person. (5) In this regulation— - “insolvency date” in respect of an insolvent bank means the date on which a bank insolvency order is made in relation to the bank under section 94 (the order) of the Banking Act 2009[^f00013]. - “insolvent bank” means either— a bank as defined in section 2 (interpretation: “bank”) of the Banking Act 2009 that has entered into the procedure in Part 2 of that Act; or a building society as defined in section 119 (interpretation) of the Building Societies Act 1986[^f00014] that has entered into the procedure in Part 2 of the Banking Act 2009, as applied and modified by section 90C (application of bank insolvency and administration legislation to building societies) of the Building Societies Act 1986; - “insolvent bank customer” means any customer— which the credit institution is reasonably satisfied was a customer of an insolvent bank at the insolvency date in respect of that insolvent bank; and with whom the credit institution begins to establish a business relationship within the period of 30 days beginning with the insolvency date in respect of that insolvent bank.

Amendment of regulation 30A (requirement to report discrepancies in registers)

18

In regulation 30A[^f00015]—

• (a) in paragraph (1), for “Before” substitute “Subject to paragraph (8A), before”;

• (b) after paragraph (8), insert—

(8A) In relation to an insolvent bank customer of a type described in any of sub-paragraphs (a) to (f) of paragraph (1), a credit institution may comply with the requirement in paragraph (1) after the establishment of a business relationship with that customer. (8B) In this regulation, “insolvent bank customer” has the meaning given in regulation 30ZA(5).

Amendment of regulation 33 (obligation to apply enhanced customer due diligence)

19

In regulation 33[^f00016]—

• (a) in paragraph (1)(b), for “high-risk third country”, in both places it occurs, substitute “FATF call for action country”;

• (b) in paragraph (1)(f)(i), for “complex or unusually large” substitute “unusually complex or unusually large in each case given the nature of the transaction”;

• (c) in paragraph (3)(a), for the definition of “high-risk third country” substitute—

• a “FATF call for action country” means a country named on the list of High-Risk Jurisdictions subject to a Call for Action published by the Financial Action Task Force as such list has effect from time to time[^f00017];

Insertion of regulation 34A (enhanced customer due diligence: cryptoasset exchange providers, custodian wallet providers and correspondent relationships)

20

After regulation 34, insert—