Updates to the UK’s Anti-Money Laundering (AML) landscape are on the horizon. On March 25, 2026, the UK Government laid the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 before Parliament.
For legal professionals, these changes aren’t just administrative, they will require a proactive review of how practices manage risk and client data.
What’s Changing?
The new statutory instrument aims to improve the effectiveness of existing regulations. Key highlights include:
- Expanded Scope: The sale of “off the shelf” firms is now officially included in the list of activities that bring a practice under the scope of AML regulations.
- Currency Shift: Monetary thresholds in Regulation 27 are moving from Euros to Pounds Sterling.
- New Terminology: The term “high risk third country” is being replaced with “FATF Call for Action Country.”
- Pooled Client Accounts: There is a new requirement for practices to provide financial institutions with information identifying underlying clients in pooled accounts. However, a vital safeguard remains: practices can decline this disclosure if it infringes on legal professional privilege or confidentiality obligations.
Why It Matters Now
While these amendments are still being debated in the House of Commons and House of Lords, firms to get ahead of the curve and begin planning internal changes immediately. This includes:
- Reviewing your Firmwide Risk Assessment (FWRA).
- Updating your AML Policies, Controls, and Procedures (PCP) documentation.
What’s Next?
The Legal Sector Affinity Group (LSAG) Guidance, the “go-to” manual for legal AML compliance, will be updated to reflect these changes once they are finalised.
For now, stay vigilant and ensure your firm is prepared for a shift from “high risk” labels to FATF-aligned standards and stricter reporting on pooled accounts.