Changes to UK AML regulations in 2025 | SmartSearch

2025 has seen a number of new procedures and processes introduced regarding anti-money laundering. These new reforms aim to strengthen knowledge of AML procedures and create more accountability for financial organisations. New AML regulations in 2025 are focused on greater risk management and technologically enhanced processes. In this blog, we’ll cover some of the main changes to AML regulations and 2025 and what to expect as a business as a result of these amendments. 

For fraud prevention software that’s always up to date and on top of regulations, explore our AML software at SmartSearch.

Updates to Money Laundering Regulations

In an attempt to tackle new forms of financial crime and risk, the government published a draft of amendments to the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 in 2025. The new amendments are designed to transform customer due diligence and focus more on risk management and gaps in knowledge, and prevention. 

These changes should help firms to ensure their Customer Due Diligence is up to date with new financial threats and that their risk assessment and onboarding are optimised smoothly.

Greater transparency for companies and trusts

The government also took greater steps to allow greater transparency regarding trust and company ownership. New ECCTA rules for Companies House mean stronger identity checks and more power to request information on clients. These changes will make it easier for financial institutions and investigators to access information regarding overseas properties. This means that it will be harder for owners to hide their identities within the structure of trusts and property companies. 

These new changes not only help to prevent fraud flying under the radar, but they also help to protect damage to your business’s reputation by being associated with shady overseas entities.

New corporate crime rules and tougher enforcement of fraud prevention

One of the most significant new AML regulations of 2025 was the ECCTA’s decision to make “failure to prevent fraud” a corporate criminal offence in September of this year. This new decision encourages larger organisations to practice stricter compliance, and exposes companies if fraud occurs when it could have been prevented with stringent AML checks and investigations. 

Paired with stricter enforcement of robust AML systems and punishments for failing to prevent fraud, this new rule should encourage financial organisations to refresh and adjust their compliance procedures to the expectations of the government. This includes stricter training, adopting advanced software and more attention on preventative measures.

More FCA involvement in AML reforms

2025 also saw new announcements for the Financial Conduct Authority to undertake the supervision of professional organisations such as legal firms. This new structure aims to allow for stronger and consistent supervision of the AML process, as well as to identify gaps in supervision which can increase the chance of organisations falling victim to fraud. 

Taking over this responsibility from the Financial Action Task Force will introduce a new set of reporting requirements and expectations regarding compliance, all designed to help reduce gaps in knowledge and anti-fraud procedures. 

Stronger AML rules for the crypto and fintech industry

Crypto scams and fintech crime have been on the rise as this industry continues to grow, and new rules have been introduced to help combat these issues. The amendments to the Financial Services and Markets Act (FSMA) require more detailed checks on owners and Persons of Significant Control and accurate reporting of any changes to management or ownership of crypto companies. 

Further changes to managing fraud on crypto platforms are expected as the government develops new technologies and processes, but for now, regulators have an enhanced focus on the ownership and running of fintech companies.

What do these AML changes mean for your business?

With the introduction of these new rules and regulations, you’ll be expected to fully assess and revise your AML and KYC compliance procedures to fit any new requirements. As a financial firm, here’s what’s expected of you: 

Update Customer Due Diligence and Risk Assessment processes

Have your AML officers identify which changes to AML regulations will affect your business and how each one will alter your approach to conducting enhanced due diligence, identity verification and risk assessments.

Ensure Companies House checks

Be extra vigilant when dealing with property structures or overseas entities, and ensure that they are correctly registered and that property ownership can be traced. Utilise tighter identity verification processes to ensure registered ownership is correct and legitimate.

Review your company's anti-fraud measures

Implement new fraud prevention procedures that can be measured and acknowledged by the ECCTA. This includes things like training on new regulations, completing certifications and tests on AML procedures and demonstrations on how to flag SARs.

Introduce AML changes into Crypto/ fintech processes

If your company handles crypto transactions, it’s important to ensure you review the new laws and have all the documentation on hand regarding business ownership and change of control. This is essential for new compliance laws and will help you to keep your business from getting wrapped up in financial crime.

Stay on top of compliance with the right tools

The many changes to AML laws in 2025 are another step in the right direction to more transparency for businesses and greater risk-focused approaches to AML. For financial firms, meeting the minimum compliance requirements is no longer enough; you also need to prove your company can perform tasks like real-time identity verification, ongoing monitoring and risk elevation. 

If you need help adjusting to these new rules, SmartSearch is here to help. Our all-encompassing software covers everything from KYC to sanction and PEP screening and ensures full compliance with ever-changing AML regulations. Request a demo today or get in touch with our team to explore our platform in more detail.