UK Government strengthens AML and crypto controls through the Money Laundering and Terrorist Financing (Amendment) Regulations 2026

TLT picks out the key points you shouldn’t miss...

What’s this about?

The UK Government has laid the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 (the 2026 Regulations), making targeted but important amendments to the MLRs 2017.

The changes expand and tighten AML controls — with a particular focus on cryptoasset businesses, correspondent relationships and changes in control — and reinforce the UK’s broader economic crime and national security objectives. The Regulations are made under the Sanctions and Anti‑Money Laundering Act 2018 (SAMLA) and largely come into force on a staged basis during 2026–2027.

Our Head of Risk and Financial Crime, Ben Cooper says...

“These amendments continue the clear direction of travel: higher expectations on governance, earlier regulatory engagement and deeper scrutiny of higher‑risk relationships — particularly in crypto and cross‑border contexts. Firms should be stress‑testing their frameworks now rather than waiting for supervisory pressure.”

The points not to miss...

Enhanced due diligence obligations for cryptoasset firms

The Regulations introduce new enhanced customer due diligence requirements for cryptoasset exchange providers, custodian wallet providers and certain correspondent relationships, reflecting heightened regulatory concern around crypto‑enabled financial crime risks.

Stricter controls around changes in ownership and control

A revised Schedule 6B strengthens the regime governing changes in control of registered cryptoasset businesses, reinforcing the FCA’s ability to scrutinise ownership structures and intervene earlier where risks arise.

Alignment with sanctions and national security objectives

The amendments sit squarely within the UK’s broader economic crime, sanctions and national security strategy, underscoring that AML compliance is no longer a purely technical exercise but part of a wider policy framework enabled by SAMLA.

Phased commencement — but no time to delay

While most provisions come into force 21 days after the Regulations are made, some crypto‑specific measures take effect later (including February 2027), giving firms limited time to implement structural and governance changes.

Increased supervisory and enforcement risk

These changes land against a backdrop of greater enforcement focus, increasing expectations that firms proactively identify, document and mitigate AML and terrorist financing risks — particularly in higher‑risk sectors and cross‑border activity.

At a glance...

Publication link	The Money Laundering and Terrorist Financing (Amendment) Regulations 2026
Published date	26 March 2026
Who has published it?	HM Treasury
Publication type	Statutory Instrument
Any key dates?	Most provisions: 21 days after being made; certain crypto provisions from February 2027
What's it relevant to?	AML, MLRs, cryptoassets, correspondent banking, economic crime, sanctions

Authors: Ben Cooper and Meghan Millward

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at November 2025. Specific advice should be sought for specific cases. For more information see our terms & conditions.

No items found.

Written by