On 26 March 2026, a draft of the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 was published along with a draft explanatory memorandum.

Overview

This draft statutory instrument (SI) implements the Government’s response to HM Treasury’s 2024 consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations (MLRs). The Government found that while the core framework of MLRs remained broadly fit for purpose, there were a number of areas where changes would improve the effectiveness for both regulated firms and customers, and help focus effort on higher risk activity.

Key Amendments

In particular, the draft SI:

  • Amends customer due diligence and enhanced due diligence provisions, for example in relation to “unusually complex or unusually large” transactions, high‑risk jurisdictions, pooled client accounts, and onboarding of customers following a bank insolvency.
  • Converts monetary thresholds from euros to sterling in a way that is consistent with Financial Action Task Force standards.
  • Updates provisions for cryptoasset businesses and the regime for changes in control, to align with the Financial Services and Markets Act 2000 framework being introduced for cryptoassets.
  • Expands and refines trust registration requirements in Part 5 and Schedule 3A to the MLRs, including extending registration to certain non‑UK express trusts holding UK land, extending the two-year exemption from registration of trusts arising on death, an exemption for Scottish survivorship destination trusts and introducing a de minimis exemption for low‑value, low‑risk trusts.
  • Removes Stamp Duty Reserve Tax from the list of “relevant taxes” that trigger registration on the trust registration service.
  • Clarifies the scope of regulated trust or company service provider activity so that the sale of “off‑the‑shelf” firms is subject to MLR obligations.
  • Updates information‑sharing and co‑operation provisions including so that supervisory authorities can share relevant information with the Registrar of Companies and the Financial Regulators Complaints Commissioner.

Next steps

These draft regulations have been laid before Parliament for approval by each House and will come into force 21 days after the day on which they are made.