UK Draft 2025 Amendments to Money Laundering Regulations Published

The changes are intended to improve clarity, reduce burdens, and ensure alignment with international standards.

Key changes proposed include:

➡️Trust Registration Service (TRS) exemptions: Clarifies that trusts used to hold client money by independent legal professionals and trust or company service providers (TCSPs) are exempt from TRS registration;

➡️ Cryptoasset businesses: Extends the application of the MLRs to cover cryptoasset ATMs and updates definitions to reflect the Financial Services and Markets Act 2023;

➡️ Supervision and enforcement: Enhances powers for supervisory authorities, including the ability to share information with other public authorities and overseas counterparts;

➡️ CDD on pooled client accounts: Introduces a requirement for firms to identify the beneficial owners of funds in pooled client accounts, subject to a risk-based approach;

➡️ CDD on publicly listed companies: Removes the automatic exemption from beneficial ownership (BO) checks for companies listed on UK-regulated markets, requiring firms to assess risk and apply CDD accordingly; and

➡️ Art market participants (AMPs): Clarifies that only those dealing in works of art in the course of business are in scope of the MLRs.

🗓️ Firms should review the proposed changes and submit feedback through the designated channels ahead of the technical consultation’s deadline of 30 September 2025.

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