Anti-money laundering (AML) legislation in the United Kingdom is designed to prevent criminals from disguising the proceeds of crime as legitimate wealth and to stop the financing of terrorism. 

Although originally associated with banks and financial institutions, AML requirements now affect a wide range of businesses, professions and service providers. Many incorporated companies, partnerships, sole traders and other unincorporated businesses may either be directly regulated under AML legislation or may encounter AML obligations through their professional advisers, customers, suppliers, lenders or regulators.

The principal aim of the legislation (including 2025 amendments to the legislation) is to ensure that businesses understand who they are dealing with, recognise potentially suspicious activity and take appropriate steps when concerns arise. 

The Money Laundering and Terrorist Financing (Amendment) Regulations 2026 (referred to in the following pages as “the 2026 amendments”) continue this approach but place greater emphasis on a risk-based and proportionate application of AML controls, with additional focus on higher-risk jurisdictions and unusually complex or unusually large transactions.