Money Laundering Regulations 2017 (MLR 2017), as amended through 2026
- Issuing authority
- HM Treasury
- Effective date
- In force since 26 June 2017. Amended several times, including proposed changes under the Money Laundering and Terrorist Financing (Amendment) Regulations 2026.
- Scope
- United Kingdom
Key requirements
The UK rulebook for regulated businesses (banks, accountants, lawyers, estate agents, crypto firms). Tells them how to do customer due diligence (CDD), apply enhanced due diligence (EDD), screen for PEPs, maintain beneficial ownership records and report suspicious activity. Multiple amendments since 2017, the Amendment Regulations 2026 will narrow EDD requirements to FATF Call to Action countries only.
Quick Summary
The Money Laundering Regulations 2017 (MLR 2017) are the UK's main anti-money laundering rules for regulated businesses. They explain how firms should identify customers, assess and manage money laundering risks, carry out customer due diligence (CDD), apply enhanced due diligence (EDD) where needed, monitor business relationships, identify beneficial owners, keep records, and report suspicious activity. The Regulations have been updated several times since 2017 to reflect changes in financial crime risks, international standards, and the growing use of cryptoassets. What's New? The Economic Crime and Corporate Transparency Act 2023 introduced several changes that strengthen the UK's response to economic crime and improve information sharing between businesses and law enforcement. Firms should continue monitoring updates to POCA and related legislation, as the UK's financial crime framework continues to evolve.
What is it?
If your business is covered by these Regulations, they explain the steps you must take to prevent criminals from using your services to launder money or finance terrorism. The Regulations work alongside other important UK laws, including the Proceeds of Crime Act 2002 and the Terrorism Act 2000.
Who does it apply to?
- Banks
- Payment institutions
- Electronic money institutions
- Cryptoasset businesses
- Lawyers
- Accountants
- Estate agents
- Trust and company service providers
- High-value dealers
- AML and compliance professionals
Why does it matter?
The MLR 2017 set the minimum AML standards for thousands of regulated businesses across the UK. They require firms to understand who their customers are, identify higher-risk situations, and put effective controls in place to detect and prevent financial crime. Failure to comply can result in regulatory action, financial penalties, or criminal prosecution.
What should firms do?
- Go thorugh the Money Laundering and Terrorist Financing (Amendment) Regulations 2026 that officially came into force on 30 June 2026.
- Narrow mandatory Enhanced Due Diligence (EDD) requirements to countries subject to the FATF's Call for Action, replacing the current broader list of high-risk countries.
- Replace certain euro-based thresholds with pound sterling amounts.
- Introduce updated requirements for pooled client accounts.
- Refine customer due diligence requirements for cryptoasset businesses.
AboutAML Breakdown
The MLR 2017 is the foundation of AML compliance in the UK. They don't just apply to banks. Many other businesses, including lawyers, accountants, estate agents, trust and company service providers, and cryptoasset businesses, also have legal obligations under these Regulations. One of the most important ideas behind the Regulations is the risk-based approach. This means firms should not treat every customer the same. Instead, they should understand the level of money laundering risk and apply controls that are proportionate to that risk. The Regulations have changed several times since 2017 as financial crime has evolved. New requirements have been introduced for cryptoasset businesses, customer due diligence, beneficial ownership, and higher-risk countries. This means firms should regularly review changes to the Regulations rather than relying on their original compliance programme.