Daily Compliance Brief — UK Treasury Consults on AML/CFT Regulatory Amendments

February 20, 2026

Signal

The UK Treasury has published a consultation document outlining proposed amendments to the Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulatory framework. The proposals include enhancements to supervisory powers, clarity on enforcement mechanisms, and adjustments to obligations for accountable institutions.

The consultation reflects evolving policy priorities following recent thematic findings and broader regulatory initiatives in response to persistent AML/CFT control weaknesses across sectors. While the process is consultative, the scope and detail suggest potential material shifts in compliance expectations should the amendments be implemented.

Why it matters

For compliance teams operating in the UK, this consultation signals a period of impending regulatory refinement that may affect reporting obligations, risk assessment standards, and supervisory engagement. Firms should closely monitor the consultation’s progress and assess potential impacts on governance frameworks and control design.

Institutions may need to prepare for expanded supervisory authorities, revised accountability standards, and updated compliance obligations. Early consideration of implementation pathways and impact on internal policies, procedures, and resourcing will support readiness should the proposed amendments be adopted.