The Institute of Chartered Accountants in England and Wales (ICAEW) emphasises the role accountants will play in implementing changes to the UK’s Money Laundering Regulations (MLRs).  

In July 2025, the UK government published its response to a consultation on existing MLRs, outlining reforms as part of the Economic Crime Plan 2023-2026.  

The reforms focus on targeted regulation, increased transparency, and stronger supervision, impacting accountants, trust and company service providers, and professional body supervisors. 

They include strengthening customer due diligence requirements.  

The government plans to update provisions to better target high-risk activities, clarify enhanced due diligence rules, and impose mandatory checks for high-risk third countries.  

These updates aim to support a risk-based approach to money laundering. 

ICAEW economic crime manager Mike Miller said: “For the accountancy profession, the message is one of heightened expectations. Firms must continue to apply a robust, risk-based approach to AML compliance, while remaining agile to future reforms in supervision and guidance.” 

Miller added that the profession now has a “critical role to play” in implementing these changes effectively and supporting clients through an evolving regulatory landscape. 

Another reform involves closing a loophole in the UK’s trust registration framework.  

All non-UK trusts with interests in UK land or property acquired before 6 October 2020 must register with HMRC’s Trust Registration Service (TRS). A de minimis exemption will be introduced to simplify trust registration criteria. 

Accountants involved in tax planning and estate administration may face additional due diligence requirements.  

Clients may need assistance navigating the TRS process and understanding new obligations.  

The government also plans to reform the UK AML supervisory model, enhancing the role of the Office for Professional Body Anti-Money Laundering Supervision. 

According to ICAEW, the government intends to tighten controls on the formation and sale of UK companies, particularly those offered “off-the-shelf”.  

Amendments to MLRs will include these sales within the scope of regulated trust or company service provider activity. Accountants active in company formation may need to adjust compliance processes. 

New money laundering requirements will also affect accountants advising clients in crypto markets.  

The government seeks to ensure crypto service providers are registered and monitored, with changes in ownership subject to scrutiny.  

Accountants should consider additional AML safeguards for clients in this sector, ICAEW said.  

The government plans to introduce a draft statutory instrument in 2025, containing legal amendments to MLRs. 

Before this, a technical consultation will ensure changes are workable and clearly drafted, the industry body explained.  

Supervisors and regulators will update sector-specific guidance to reflect new requirements.