UK Money Laundering and Terrorist Financing (Amendment) Regulations 2026: What AML Compliance Leaders Need to Know

Regulation Name: Money Laundering and Terrorist Financing (Amendment) Regulations 2026
Date Of Issue: 09 Jun 2026
Region: United Kingdom
Agency: UK Parliament

UK AML Regulations 2026: A Major Shift for Financial Crime Compliance

The UK Money Laundering and Terrorist Financing (Amendment) Regulations 2026 introduce one of the most significant updates to the country’s AML/CFT framework since the 2017 Money Laundering Regulations.

For AML compliance leaders, MLROs, financial institutions, fintech companies, cryptoasset businesses, law firms, trust and company service providers (TCSPs), and regulated entities, these amendments require immediate attention because they reshape:

• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD)
• Cryptoasset compliance
• Trust registration
• FATF alignment
• FCA reporting obligations
• Pooled account oversight
• Beneficial ownership transparency

The amendments were made on 9 June 2026 and most provisions come into force 21 days after the Regulations are made, while certain cryptoasset provisions become effective from 1 February 2027 and 25 October 2027.

What Are the UK Money Laundering and Terrorist Financing (Amendment) Regulations 2026?

The Regulations amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) to strengthen the UK’s AML/CFT regime and better align it with evolving Financial Action Task Force (FATF) standards.

According to the explanatory note, the key objectives include:

• Replacing euro thresholds with sterling values
• Strengthening customer due diligence
• Enhancing cryptoasset supervision
• Improving trust transparency
• Expanding regulatory cooperation
• Updating the UK’s approach to high-risk jurisdictions
• Improving controls around pooled accounts and correspondent relationships

Key Changes Introduced by the UK AML Amendment Regulations 2026

1. Euro Thresholds Replaced with Sterling Values

One of the most visible changes is the replacement of euro-based thresholds with pound sterling values.

Examples include:

This simplifies domestic compliance while maintaining alignment with FATF recommendations.

2. Enhanced Due Diligence for Pooled Accounts

The Regulations introduce entirely new obligations for financial institutions offering pooled accounts.

Institutions must now:

• Understand the purpose of the pooled account
• Assess how customers intend to use it
• Verify consistency with customer risk profiles
• Conduct updated due diligence where necessary
• Assess and mitigate AML and terrorist financing risks
• Consider additional controls
• Demonstrate to regulators that controls are proportionate

Customers must also:

• Maintain records for five years
• Identify persons on whose behalf funds are held
• Provide information to law enforcement upon request

These changes significantly increase transparency around client money structures.

3. New Cryptoasset AML Requirements

Perhaps the most transformative change affects cryptoasset businesses.

A new Regulation 34A creates mandatory enhanced due diligence requirements for:

• Cryptoasset exchange providers
• Custodian wallet providers
• Cross-border correspondent relationships

These firms must:

Conduct Enhanced Due Diligence

• Gather detailed information about counterparties
• Assess AML controls
• Evaluate supervisory quality
• Review public reputation
• Obtain senior management approval
• Document responsibilities

Verify Customer Due Diligence

Crypto firms must ensure counterparties:

• Verify customer identities
• Conduct ongoing monitoring
• Can provide customer records upon request

Prohibit Shell Bank Relationships

Cryptoasset businesses must not establish or maintain relationships with shell banks or institutions that facilitate shell bank activities.

These requirements come into force on 1 February 2027 and align the UK with FATF Recommendations 13 and 15.

FATF High-Risk Third Countries Replaced

The UK has replaced the concept of “high-risk third countries” with “FATF Call for Action Countries.”

This means AML programmes should increasingly reference FATF’s dynamic list rather than static national classifications.

The update affects:

• Enhanced Due Diligence
• Reliance frameworks
• Customer risk assessments
• Sanctions and jurisdictional screening

Compliance teams should ensure screening systems and country risk methodologies are updated accordingly.

Special Rules for Insolvent Bank Customers

The amendments create a new mechanism allowing customers of failed banks to access banking services more quickly.

Credit institutions may:

• Open accounts before completing full due diligence
• Permit transactions under controlled conditions
• Complete remaining AML checks as soon as practicable

However, institutions must still:

• Identify customers
• Verify authorised representatives
• Stop transactions if enhanced due diligence triggers arise

This balances financial stability with AML obligations.

New FCA Reporting Obligations

Authorised firms supervised by the FCA now have additional obligations.

If previously submitted information:

• Becomes inaccurate, or
• Experiences a material change,

The firm must notify the FCA within 30 days.

This increases the importance of governance processes and regulatory reporting controls.

Trust Registration Changes

The Regulations significantly expand trust registration requirements.

Expanded Registration Scope

Trusts that:

• Acquired UK land before 6 October 2020, and
• Continue to hold that land,

may now require registration.

Additional Excluded Trusts

Several new trust categories become exempt, including:

• Certain deceased estate arrangements
• Transitional trustee arrangements
• Low-value trusts
• Specific property variation trusts

A general exclusion also applies to certain trusts with:

• Assets below £2,000
• Cumulative property values below £10,000
• Annual income below £5,000

These amendments improve transparency while reducing unnecessary administrative burdens.

Stronger Supervision and Information Sharing

The Regulations strengthen cooperation between supervisory bodies.

Key changes include:

• Extending cooperation duties to the Registrar of Companies
• Expanding disclosure gateways
• Bringing cryptoasset businesses into confidentiality provisions
• Improving regulatory information exchange

These updates support a more integrated financial crime prevention ecosystem.

Cryptoasset Change in Control Framework

A major structural reform affects registered cryptoasset businesses.

The new Schedule 6B aligns cryptoasset ownership rules with the Financial Services and Markets Act framework.

Key features include:

• Notification requirements for acquisitions of control
• Beneficial ownership monitoring
• FCA approval mechanisms
• Enhanced enforcement powers
• Penalties for non-compliance

The framework is designed to strengthen governance and prevent unsuitable persons from controlling cryptoasset businesses.

What Do These Changes Mean for AML Compliance Leaders?

Immediate Priorities

Update AML Policies

Review:

• CDD policies
• EDD procedures
• Country risk methodologies
• Pooled account frameworks
• Crypto compliance programmes

Reconfigure Screening Systems

Ensure systems reflect:

• FATF Call for Action Countries
• New transaction thresholds
• Sterling-based limits

Enhance Customer Risk Assessments

Risk models should account for:

• Pooled accounts
• Crypto correspondent relationships
• Expanded beneficial ownership obligations

Prepare for Crypto Regulatory Expansion

Cryptoasset businesses should:

• Map correspondent relationships
• Strengthen onboarding controls
• Conduct gap assessments
• Develop senior management approval processes

Strengthen Governance

Compliance teams should establish:

• FCA reporting workflows
• Trust registration monitoring
• Regulatory change management
• Record retention procedures

Frequently Asked Questions

When do the UK Money Laundering and Terrorist Financing (Amendment) Regulations 2026 come into force?

Most provisions take effect 21 days after being made, while crypto correspondent relationship rules become effective on 1 February 2027 and certain crypto control provisions apply from 25 October 2027.

What is the biggest AML change in the 2026 UK Regulations?

The introduction of enhanced due diligence obligations for cryptoasset correspondent relationships and pooled accounts represents one of the most significant changes.

What replaced the UK high-risk third country definition?

The Regulations replace “high-risk third country” with “FATF Call for Action Country,” aligning the UK more closely with FATF standards.

How do the new UK AML rules affect crypto firms?

Cryptoasset exchange providers and custodian wallet providers must perform enhanced due diligence, avoid shell bank relationships, and implement stronger correspondent relationship controls.

Do the Regulations change trust registration requirements?

Yes. Certain trusts holding UK land acquired before October 2020 may now need to register, while several new categories of low-risk trusts become exempt.

Final Thoughts

The UK Money Laundering and Terrorist Financing (Amendment) Regulations 2026 are more than a technical legislative update—they signal the UK’s continued movement toward a more risk-based, technology-aware, and FATF-aligned AML framework.

For AML compliance leaders, the amendments demand proactive action across governance, customer due diligence, cryptoasset compliance, trust transparency, and regulatory reporting.

Organisations that modernise their AML programmes early will be better positioned to meet regulatory expectations, reduce financial crime exposure, and maintain operational resilience in an increasingly complex compliance environment.

Read about the laws; click here.

Read about the product: Transact Comply

Empower your organization with ZIGRAM’s integrated RegTech solutions – Book a Demo