The UK Parliament has approved the Money Laundering and Terrorist Financing (Amendment) Regulations 2026, introducing a package of targeted reforms. Most provisions take effect from 30 June 2026, while certain crypto asset-related measures are phased in during 2027. For compliance teams across banks, fintechs, crypto firms and professional services, these UK AML regulations 2026 represent one of the most significant targeted updates to the MLRs 2017 in recent years. The reforms tighten controls on crypto asset businesses, expand regulatory information-sharing powers and close loopholes flagged in the Government’s 2024 review. Whether you operate in the UK or serve UK-connected clients from overseas, understanding these changes is not optional.
| Compliance area | Key requirement | Why it matters |
|---|---|---|
| Crypto asset due diligence | Enhanced CDD for exchanges and custodian wallet providers | Aligns crypto firms with traditional financial services standards |
| TCSP scope expansion | Sale of off-the-shelf companies now covered by AML rules | Closes a gap used to obscure beneficial ownership |
| Currency thresholds | Euro thresholds replaced with pound sterling equivalents | Removes exchange rate complexity from compliance processes |
| Information sharing | Companies House joins duty-to-cooperate framework | Strengthens inter-agency intelligence on financial crime |
| Trust registration | Loopholes in Trust Registration Service closed | Improves transparency of beneficial ownership of trusts |
| Crypto ownership and control | FCA approval and enhanced scrutiny of ownership changes under revised Schedule 6B | Gives regulators earlier intervention on high-risk ownership structures |
What the UK AML regulations 2026 actually change
The Money Laundering and Terrorist Financing (Amendment) Regulations 2026 amend the existing Money Laundering Regulations 2017 (MLRs 2017) framework. HM Treasury published the statutory instrument on 26 March 2026 under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA). Parliament approved the package on 10 June 2026.
The reforms follow a structured review that the Government conducted in 2024. That review identified gaps in coverage, proportionality concerns and areas where evolving risks, particularly around crypto and cross-border activity, had outpaced the existing rules. As a result, the 2026 amendments target specific weaknesses rather than overhauling the entire framework.
Most provisions come into force 21 days after the Regulations are made. Certain crypto asset-specific provisions follow a phased timeline, with some taking effect from 1 February 2027 and others from 25 October 2027. Firms should not treat these later dates as reasons to delay preparation.
Tighter controls for cryptoasset businesses
Cryptoasset exchange providers and custodian wallet providers face the most substantial changes under the new regulations. The reforms introduce additional due diligence and risk-management obligations for these businesses, reflecting the Government’s concern about crypto-enabled financial crime.
Under the amended rules, crypto asset firms must avoid relationships with shell banks. They must also implement stronger correspondent relationship controls when dealing with other crypto service providers. A revised Schedule 6B strengthens the regime governing changes in control of registered crypto asset businesses. This gives the Financial Conduct Authority (FCA) greater ability to scrutinize ownership structures and intervene earlier where risks emerge.
The FCA also gains expanded powers to share information in crypto asset supervision. For crypto firms already registered under the existing MLRs, the transition period provides a window to upgrade governance frameworks. For those planning to enter the UK market, the higher bar is now clear.
What crypto firms should do now
Compliance teams at crypto asset businesses should review their current CDD procedures against the new enhanced requirements. They should map all correspondent relationships and assess whether adequate controls exist. Board-level reporting on ownership changes should be formalized before the February 2027 deadline.
Expanded scope for trust and company service providers
The regulations expand the definition of Trust and Company Service Provider (TCSP) activities. The sale of off-the-shelf companies now falls squarely within the scope of AML regulations. Previously, firms could argue that selling a pre-formed company did not trigger the same CDD obligations as forming one from scratch. That argument no longer holds.
This change is particularly relevant for accountancy practices that undertake company formation work or act for corporate clients. Pre-formed companies present increased money laundering risks because their ownership histories can be opaque. By bringing off-the-shelf sales into scope, the regulations close a gap that criminals could exploit to obscure beneficial ownership.
Professional services firms, including legal and accounting practices, should update their risk assessments to reflect this expanded definition. Any firm involved in the creation, sale or management of corporate vehicles should review whether its current AML compliance framework captures all relevant activities. Overseas firms with UK-facing activities should also assess whether the expanded TCSP or crypto asset obligations affect their UK regulatory perimeter analysis.
Simplified thresholds and practical compliance changes
One of the more straightforward changes replaces euro-denominated thresholds with pound sterling equivalents. The familiar threshold of 10,000 euros becomes 10,000 pounds. This removes the need for firms to calculate exchange rates when determining whether a transaction triggers reporting or due diligence obligations.
While this sounds minor, the practical impact is real. Compliance teams no longer need to track fluctuating exchange rates or make judgment calls about which rate to apply. The change reduces the administrative burden on firms and eliminates a common source of inconsistency in threshold application.
The reforms also narrow enhanced due diligence requirements to FATF High-Risk Jurisdictions subject to a Call for Action. However, firms remain responsible for assessing and mitigating geographic risks through their broader risk-based framework. Rather than mandating EDD for a broad set of countries, the regulations concentrate mandatory requirements where the risk is highest, while expecting firms to exercise proportionate judgment elsewhere based on their own risk assessments.
Stronger information-sharing powers across agencies
A central theme of the 2026 amendments is improved information flow between regulators and other authorities. Companies House now joins the duty-to-cooperate framework under the MLRs. This means Companies House can share and receive information more freely with AML supervisors and law enforcement.
The Financial Regulators Complaints Commissioner also joins the list of relevant authorities eligible for information sharing. These additions strengthen the intelligence network available to investigators pursuing money laundering and terrorist financing cases.
For regulated firms, the practical implication is clear. Information you provide to one authority is more likely to be shared with others. Inconsistencies between what you report to different bodies carry greater risk. Firms should ensure that their suspicious activity reporting, customer records and risk assessments are consistent across all regulatory touchpoints.
Trust registration improvements
The amendments also tighten the Trust Registration Service. The reforms make a number of changes to the Trust Registration Service, including amendments intended to improve transparency and beneficial ownership reporting for trusts with significant UK connections. The changes capture structures that previously fell outside the regime.
Alignment with the UK’s economic crime strategy
These amendments sit within a broader policy context. The UK Government has made economic crime, sanctions enforcement and national security a central pillar of its regulatory approach. The 2026 Regulations reinforce that AML compliance is no longer a purely technical exercise. Firms are expected to understand how their compliance programs connect to national security objectives.
The Financial Action Task Force (FATF) continues to set international standards that shape UK policy. The UK’s decision to narrow EDD to FATF High-Risk Jurisdictions subject to a Call for Action reflects an effort to align domestic rules more closely with FATF’s risk-based framework while reducing unnecessary burden on firms dealing with lower-risk jurisdictions.
Against a backdrop of increasing enforcement activity globally, including record fines in other jurisdictions, UK firms should treat these reforms as a signal. Regulators expect proactive identification, documentation and mitigation of AML and terrorist financing risks. Waiting for supervisory pressure is a risky strategy.
How to prepare before 30 June 2026
With the main provisions taking effect from 30 June 2026, compliance teams have a short window to act. Here are the priorities.
First, review your business-wide risk assessment. The expanded TCSP scope, new crypto requirements and changed EDD thresholds all affect how risk should be categorized. Update your risk assessment to reflect the amended regulatory landscape.
Second, audit your CDD and EDD procedures. Confirm that enhanced due diligence processes align with the narrowed scope (FATF High-Risk Jurisdictions subject to a Call for Action) and that any crypto-related procedures meet the new enhanced standards.
Third, check your information-sharing protocols. With Companies House and additional authorities joining the duty-to-cooperate framework, ensure your reporting is consistent across all channels. Discrepancies between what you tell different regulators will be easier to spot.
Fourth, brief your board. These changes carry governance implications, particularly for crypto firms facing the revised Schedule 6B controls on changes in ownership. Board-level awareness is essential.
Finally, document everything. Regulators want to see evidence of a considered, proportionate response. A compliance program that can demonstrate how it assessed the new requirements and adapted accordingly will be in a far stronger position than one that cannot.
Although the amendments are targeted rather than wholesale reforms, they signal a continued regulatory focus on crypto asset risk, beneficial ownership transparency and inter-agency cooperation. Firms that review their controls early will be better positioned to demonstrate compliance when the new requirements take effect.
This article is for informational purposes only and does not constitute legal or regulatory advice. For guidance specific to your business, consult a qualified compliance professional.
If your organization needs help navigating the regulatory changes, Compliance7 offers tailored AML advisory services, including policy reviews, risk assessments and independent audits designed for your sector and jurisdiction.
