HM Treasury has published a draft of the Money Laundering and Terrorist Financing (Amendment and Miscellaneous Provision) Regulations 2025. This statutory instrument sets out targeted reforms to the UK’s money laundering regime.
The changes are designed to close loopholes, streamline due diligence, and bring cryptoasset oversight in line with the Financial Services and Markets Act (FSMA).
Our comprehensive guide contains everything you need to know about the upcoming changes. Download it now.
Key changes at a glance
Customer Due Diligence (CDD): Letting agents and art market participants brought in line with high value dealers.
Enhanced Due Diligence (EDD): Now focused on FATF “call for action” countries and only for unusually large or complex transactions.
Cryptoasset firms: New 10% change-in-control threshold and extended FCA notification requirements, aligning with FSMA.
Trusts: More categories required to register with HMRC’s Trust Registration Service, with new exclusions for low-risk trusts.
Pooled Client Accounts: Decoupled from simplified due diligence rules.
Monetary thresholds: Converted from euros to sterling.
Deadlines to know
30 September 2025: Deadline to submit feedback to HM Treasury on the draft regulations.
Early 2026: Final instrument expected to be laid before Parliament.
What this means for compliance teams
These reforms will require firms to review existing AML frameworks, update policies, and ensure systems are aligned with the revised obligations; particularly for cryptoasset businesses, trust service providers, and those relying on pooled client accounts.
