https://amlwatcher.com/news/uk-government-unveils-2026-2029-anti-money-laundering-and-asset-recovery-strategy/
The UK Government has published its Anti-Money Laundering and Asset Recovery Strategy 2026–2029, setting out a three-year plan to strengthen the country’s defences against money laundering and recover more criminal assets. Published by the Home Office on 15 September 2026, the strategy is backed by at least £550 million in investment and more than 500 additional enforcement specialists across the system.
The strategy follows a rise in enforcement and recovery activity. In 2025/26, the government recorded 3,158 system-wide illicit finance disruptions and 4,085 money laundering convictions. Authorities recovered £345.3 million in criminal assets, denied criminals £1.1 billion and returned £26.1 million to victims. At the same time, the government identifies fintech, cryptoassets, AI and online criminality as areas that are changing how illicit funds can be moved and concealed.
A three-pillar approach to AML
The strategy is structured around three pillars: Target, Integrate and Empower. Target focuses resources on the highest-harm threats while reducing low-value, “box-ticking” activity. Integrate aims to connect financial intelligence across government, law enforcement and the private sector. Empower focuses on strengthening specialist capabilities, technology and legal powers.
A major development is the planned National Financial Intelligence Service (NFIS), which will sit within the National Crime Agency and be supported by the FCA. It will bring together existing capabilities including Fusion, JMLIT and aligned UKFIU intelligence functions, while using AI to analyse large datasets and identify suspicious patterns. The government also intends to extend intelligence partnerships beyond banks to cryptoasset firms, Money Service Businesses and Electronic Money Institutions.
SAR reform and stronger supervision
The strategy also proposes further reform of the Suspicious Activity Reporting (SAR) regime. Some 866,616 SARs were submitted to the UKFIU in 2024/25. The government will examine whether the suspicion threshold should be raised to reduce low-value reporting while assessing the potential effect on intelligence collection and customer outcomes. The UKFIU is also moving toward a technology-enabled operating model, with intelligence outputs expected to more than double.
AML/CTF supervision will undergo structural reform, reducing the number of supervisors from 25 to three. The FCA is expected to assume responsibility for supervising legal, accountancy and trust and company service providers. The government will also consult on stronger supervisory powers, including unannounced visits, greater director accountability and stronger enforcement of Money Laundering Regulations.
Cryptoassets, AI and ownership transparency
Emerging technology is a significant part of the strategy. The government identifies stablecoins and privacy-enhancing technologies as areas requiring further policy development, including stronger cryptoasset recovery processes and measures relating to assets held on overseas exchanges. It will also develop a policy roadmap addressing the AML implications of privacy-enhancing technologies.
Companies House reforms will strengthen identity verification and filing controls, while a wider review of asset ownership will examine the searchability, accuracy, scope and accessibility of ownership information used to trace illicit assets. The strategy also plans stronger international cooperation on cross-border illicit finance and cryptoasset controls through the UK’s FATF and G20 roles.
For AML professionals, the strategy signals a continued shift toward risk-based, intelligence-led compliance, stronger public-private information sharing and greater use of technology. Firms should monitor forthcoming consultations and implementation milestones affecting SARs, AML supervision, digital ID, cryptoassets, information sharing and proportionate AML controls.
