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FCA flags weaknesses in firms’ CDD and enhanced checks, including poor documentation, weak governance and inconsistent monitoring, raising concerns over exposure to ML and FC risks

April 13, 2026

FCA finds that while many firms apply a risk-based approach and tailor checks for higher-risk customers such as PEPs, there are widespread weaknesses in practice, including insufficiently detailed policies, poor documentation of EDD measures, unclear review cycles, and inconsistent record-keeping of key customer information such as source of funds and purpose of relationships. The FCA also highlights gaps in governance, including unclear senior management sign-off processes…

NCA’s UKFIU SARs Reporter Booklet (Mar 26) reveals large-scale fraud and ML schemes, including £2.4M VAT frauds, £600k+ asset freezes, and complex organised crime networks

April 10, 2026

It shows how SARs are instrumental in uncovering large-scale illicit finance schemes, including charity-linked diversion fraud exceeding £300,000, VAT frauds over £2.4 million, payroll fraud and shell company abuse involving £4 million+ turnover, and underground banking networks linked to organised crime groups. The cases also demonstrate widespread use of layering techniques, mule accounts, false invoicing, and rapid fund transfers to disguise criminal proceeds…

FCA publishes good and poor practice on improving asset management authorisation applications, warning that weak governance and FC controls often delay approvals

April 9, 2026

It finds that many applications lack sufficient detail, consistency, and clarity on governance structures, business models, and financial crime controls, particularly around AML frameworks, risk assessments, and compliance oversight arrangements. The FCA also notes that firms often submit incomplete documentation or fail to clearly demonstrate how their systems and controls will operate in practice…

NCA’s Operation Atlantic with US and Canadian partners disrupted a global crypto fraud scheme affecting 20,000+ victims, freezing $12M and identifying a further $45M in illicit funds

April 9, 2026

The operation targeted “approval phishing” scams, where victims are tricked into unknowingly granting criminals access to their crypto wallets. Authorities identified over 20,000 victims across multiple countries, disrupted scam networks, and froze more than $12 million in suspected criminal funds, with a further $45 million in illicit crypto proceeds identified for investigation. The operation highlights the growing scale of cross-border crypto fraud and the importance of real-time international cooperation and industry collaboration to trace…

HM Treasury publishes draft MLR 2026, marking a major evolution in the AML/CTF framework through tighter CDD, expanded crypto oversight, and stronger coordination to drive outcomes-led enforcement

April 6, 2026

The reforms strengthen the AML/CTF framework by tightening risk-based CDD and EDD triggers particularly for unusually large or complex transactions and pooled accounts while expanding oversight of cryptoasset businesses, broadening trust registration requirements, updating high-risk jurisdiction definitions in line with FATF “call for action” countries, enhancing supervisory coordination and information-sharing, and bringing off-the-shelf company sales into scope to drive more effective, outcomes…

NCA’s ‘Online Safety Act’ Guidance explains how the Act strengthens reporting of online child sexual exploitation and abuse by requiring platforms to share intelligence with law enforcement

April 2, 2026

It highlights the NCA’s central role in receiving, triaging, analysing, and disseminating reports from tech companies through a dedicated reporting system, ensuring that actionable intelligence is passed to UK and international law enforcement agencies. The document also clarifies reporting obligations for both UK and overseas platforms, alongside compliance expectations and safeguards to ensure timely and accurate reporting…

HM Treasury introduces targeted reforms to the UK’s money laundering regulations to improve effectiveness, close loopholes and deliver a more proportionate, risk-based regime

March 30, 2026

The reforms amend the Money Laundering Regulations 2017 to address weaknesses identified through consultation, including issues relating to customer due diligence, cryptoasset regulation, trust registration and supervisory coordination. According to HM Treasury, the measures are designed to strengthen the UK’s anti-money laundering and counter-terrorist financing framework while reducing unnecessary compliance burdens and improving proportionality for firms.

NCA issues an Invoice Fraud Leaflet warning that criminals are targeting the construction industry through fake invoices, supplier impersonation, and email interception to divert payments

March 25, 2026

One-page advisory identifies common red flags such as urgent payment requests, unexpected changes to bank details, and discrepancies in invoice information, often enabled by intercepted or spoofed communications. It also sets out practical mitigation measures, including independent verification of payment details, dual authorisation for high-value transactions, and improved cybersecurity and staff awareness to reduce vulnerability…

NCA investigates after UK Border Force seized £80M of cocaine from a Panama shipment at London Gateway port, uncovering a major trafficking route hidden among legitimate goods bound for Norway

March 24, 2026

The drugs were discovered inside a shipping container arriving from Panama, concealed among legitimate goods including ceramics and kitchenware and destined for onward shipment to Norway. The seizure forms part of ongoing international efforts to disrupt large-scale drug trafficking networks, with the NCA now working with global partners to trace the criminal supply chain behind the shipment…

NCA launches the National Strategic Assessment of SOC 2026, warning that tech-driven, interconnected crime is rising rapidly and calling for a National Police Service to tackle it with intelligence and coordinated action

March 21, 2026

The assessment provides an authoritative intelligence picture of threats including fraud, money laundering, cybercrime, drug trafficking and organised immigration crime, highlighting how criminals increasingly exploit digital technologies, financial systems and international supply chains to operate at scale. It also emphasises that these threats are interconnected and increasingly enabled by professional facilitators and online platforms, requiring coordinated action across law enforcement, government and the private sector to disrupt criminal networks and protect the UK public…

FCA highlights rising risks from unregulated lenders and ‘Annex 1’ firms, warning that limited oversight, weak transparency, and gaps in consumer protection demand far stronger DD from regulated firms

March 20, 2026

The FCA highlights that some regulated firms are increasingly interacting with or referring customers to these entities, often without fully assessing the risks, which can expose consumers to complex, opaque, and potentially harmful lending arrangements. It also notes weaknesses in AML controls, limited transparency, and the regulator’s restricted powers over such firms, making oversight more challenging. As a result, the FCA is urging regulated firms to strengthen their due diligence processes—verifying FCA registration, independently validating information, understanding the nature of the business…

UK moves to dissolve Zedxion Exchange Ltd, a crypto platform accused of funneling funds to Iran’s IRGC, after investigations revealed fake registrations and transactions enabling sanctions evasion

March 18, 2026

An OCCRP investigation revealed that the exchange used false registration details and a fictitious director to obscure its connections to sanctioned individuals, enabling it to operate under the radar of UK authorities. This move follows U.S. sanctions targeting Zedxion and its affiliated firm for allegedly handling wallets tied to the IRGC. Blockchain analysis indicates that the platform processed substantial funds for networks linked to Iran, highlighting how crypto exchanges can be exploited to evade sanctions and finance illicit activity…

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