UK AML and Asset Recovery Strategy 2026-2029: What It Means

On 15 September 2026 the Home Office and HM Treasury published the UK's first combined Anti-Money Laundering and Asset Recovery Strategy, covering 2026 to 2029. It matters to accountants because it sets the direction for how supervision, suspicious activity reporting and enforcement will change over the next three years, and it confirms a timetable for the move to the FCA. This guide summarises the main measures and what they mean for firms. It builds on our timeline of 2026 AML changes for accountants.

What the strategy is and what it spends

The strategy sets three objectives: make the UK's defences more effective and efficient, disrupt money laundering networks, and recover more criminal assets. Its main theme is a shift from high-volume, process-heavy compliance towards intelligence-led work focused on effectiveness, and the government talks about reducing "box ticking".

The headline funding is more than £500 million over three years from the Economic Crime Levy, according to a summary by Comsure, which notes that some commentary cites £550 million and describes that figure as inferred rather than official. Law firm Squire Patton Boggs and Propertymark report at least £550 million. Treat the exact total with caution and check the strategy itself. Both sources agree on more than 500 additional officers across police forces, the National Crime Agency (NCA) and the Crown Prosecution Service.

The strategy also repeats an NCA estimate that more than £100 billion may be laundered through the UK or UK corporate structures each year. Comsure points out that this is an intelligence assessment rather than a measured cash flow.

Supervision: from 25 supervisors to three

The number of AML supervisors will fall from 25 to three: the FCA, HMRC and the Gambling Commission. The FCA becomes the single supervisor for legal, accountancy and trust and company service providers, confirming the decision announced in October 2025. According to Squire Patton Boggs, the main supervisory transition is planned for 2028/29, with existing supervisors staying responsible until firms move across, and these dates remain subject to legislation. Comsure describes the move as from the back end of 2028. Our guide to the FCA as single AML supervisor covers what firms can do in the meantime.

The FCA's role will include registration, fitness and propriety checks for beneficial owners, officers and managers, and fees. It plans to publish examples of good and poor use of AI and to update its Financial Crime Guide in 2026/27.

Consultations to expect in 2026/27

Much of the strategy is a programme of consultations. According to the summary of the strategy, they include:

• Money Laundering Regulations reform. Further changes to the Regulations, including considering raising the suspicion threshold for reporting to "reasonable grounds to suspect".
• Enforcement powers. Unannounced visits, searches of premises for cash and personal accountability for directors who breach the Regulations. The Gambling Commission would gain direct enforcement powers, and a review will consider who can prosecute breaches, including the Insolvency Service.
• The regulatory perimeter. Whether to extend the Regulations to property developers, offshore virtual asset service providers, antiques and antiquities dealers, football clubs and agents, and donation-based crowdfunding, and to examine letting agents and high value dealers.
• Professional enablers. A Home Office consultation on a power for the Home Secretary to act against the most harmful enablers, including where criminal thresholds may not be met, with options such as restricting services or practice.

Suspicious activity reports, data and technology

The strategy aims for fewer low-value suspicious activity reports and more usable intelligence. It refers to a National Financial Intelligence Service and a strengthened UK Financial Intelligence Unit, with new information-gathering powers that need parliamentary time. Digital identity and AI are expected to play a greater role in customer due diligence and transaction monitoring. A bank account portal that would show whether an account exists, and where, is under consideration but not committed. Our guide to suspicious activity reporting explains how to report well under the current rules.

Asset recovery

The strategy adds investigators, lawyers and forensic accountants and more capacity at the NCA and CPS. It proposes extending civil seizure and forfeiture to vehicles and high-value clothing and accessories, making crypto-asset recovery powers easier to update, and strengthening recovery from overseas exchanges. It builds on the Crime and Policing Act 2026. Mandatory identity verification for new company directors and persons with significant control at Companies House is also part of the picture.

What accountants should do now

• Carry on with your current supervisor. Nothing has changed legally because of the strategy. Consultations come first, then legislation.
• Watch the consultations. Several affect accountancy practices directly: reporting thresholds, director accountability, unannounced visits and professional enabler powers.
• Prepare for fitness and propriety checks. Know the roles of your owners, officers and managers and keep their records in order.
• Keep documentation strong. Intelligence-led supervision still relies on evidence of risk assessments, due diligence and decisions.

Frequently asked questions

Does the strategy change my obligations today?

No. It sets direction and promises consultations. Current obligations under the Money Laundering Regulations 2017, as amended, still apply.

When will the FCA take over supervision?

The strategy points to a main transition in 2028/29, subject to legislation. Your current supervisor stays responsible until your firm moves across.

Where can my team get training?

See Learnsignal's CPD courses for finance professionals.