Business changes to the Anti Money Laundering Legal Regime
The Money Laundering and Terrorist Financing (Amendment) Regulations 2026 (the “2026 Regulations”)
Various types of business are subject to the anti-money laundering regime in the UK (“AMLR”). The rules were last amended in 2025 (with effect from 14 May 2025).
The 2026 Regulations are now being introduced to amend the rules further. The 2026 Regulations were laid before Parliament on 25 March 2026, and they are expected to come into effect in June/July 2026. The 2026 Regulations introduce a number of targeted reforms to the current anti-money laundering regime in the UK (“AMLR”) to enhance the effectiveness of AMLR.
Nature and scope of the changes
These AMLR changes focus on updating existing rules (as previously amended in 2025) rather than replacing them, closing regulatory loopholes, and improving proportionality for businesses. The aim is to improve risk-based approaches and reduce unnecessary over-compliance. These anti money laundering templates - Policy, Risk Assessment and ID Checklist - are designed for low risk, unregulated businesses.
In contrast to the 2025 changes, the changes being made by the 2026 Regulations only have a minor impact on most businesses. They will not face a completely new regime—but they will need to fine-tune their AML controls, especially as to :
- when and how they carry out due diligence (The 2026 Regulations introduce a more refined approach to enhanced due diligence.)
- how they assess risk (The 2026 Regulations introduce a more genuinely risk-based approach.)
- how they manage client accounts
- audit trails, record keeping, document retention,
- responding to information requests (from banks or other third parties)
In short: less “box-ticking,” under the 2026 Regulations and, instead, more emphasis on demonstrable risk management and more targeted compliance.
What this means for AMLR-related Simply Docs templates and documents
We have reviewed all of our AMLR-related business templates and other documents and made minor updates as necessary. Additional updates specifically for estate agencies and lettings agencies can be viewed at Property Newsletter.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.