15 Targeted Reforms to Ease AML Compliance
Parliament has approved the Money Laundering and Terrorist Financing (Amendment) Regulations 2026, introducing 15 targeted reforms designed to strengthen the UK's AML regime while reducing unnecessary compliance burdens on accounting practices and professional firms. The regulations are expected to take effect from 30 June 2026.
Enhanced Due Diligence: Narrower Scope
A key change is that mandatory Enhanced Due Diligence (EDD) will now apply only to countries on the UK's blacklist, rather than the frequently changing grey list used previously. This significantly reduces the volume of clients triggering EDD requirements and streamlines the due diligence process for accounting firms.
For AAT members and other accounting professionals acting as Money Laundering Reporting Officers (MLROs), this means less frequent need for deeper investigation on client relationships. The narrower scope allows teams to focus resources where the genuine risk is highest.
Practical Impact for Your Firm
The cumulative effect of these 15 reforms is to reduce red tape without compromising the UK's AML defences. If your firm handles client monies or manages client accounts, you will benefit from clearer, less burdensome compliance processes. However, you must still complete routine due diligence on all clients; the reform only narrows the scope of EDD.
Review your AML policies and procedures before 30 June 2026 to align with the new regulations. Your compliance and MLRO team should be ready to apply the narrower EDD criteria from the effective date.