The government is requesting bankers and lawyers to submit examples demonstrating how they have prevented illicit funds from reaching the UK, as officials work to convince an international financial watchdog that London's anti-money-laundering defences have substantially improved.
The Treasury's call for evidence aims to showcase that the UK has strengthened its approach to combating financial crime, particularly following a critical 2018 assessment by the Financial Action Task Force (FATF), a global body that monitors compliance with anti-money-laundering standards. That earlier review raised concerns about the effectiveness of the UK's controls.
Officials are collecting real-world examples before submitting their formal evidence package to the taskforce in October.
"To build the strongest possible picture of system-wide effectiveness,"the Treasury stated,
"we are looking for real-life examples with clear, demonstrable results that illustrate how the UK's anti-money laundering, counter-terrorist financing and sanctions frameworks operate effectively in practice."According to a professional body notice published this week, the submission window for case studies remains open until 7 September 2026. The watchdog's assessment team will then conduct an on-site review in June 2027.
The UK faces significant pressure to demonstrate meaningful progress. According to recent analysis of the FATF taskforce meeting, the updated assessment methodology has shifted focus toward whether countries can prove their rules actually work in practice, rather than simply existing on paper. Regulators are also monitoring emerging threats, including cryptocurrency platforms, which can obscure the origins of transactions.
Last year, the National Crime Agency estimated that £100bn is being laundered through or within the UK annually, with financial and legal services firms facilitating transactions for fraudsters, human traffickers, drug traffickers and organised crime networks. The UK's national risk assessment on money laundering and terrorist financing has identified elevated risk levels across every category since 2017.
The rating agency Moody's highlighted the challenge facing the government.
"As the UK approaches its next FATF mutual evaluation in 2027, the pressure on its anti-money laundering (AML) regime is intensifying,"Moody's stated in a report earlier this year.
"Billions are spent each year in the UK on supervision with hundreds of firms refused entry to the financial system following due diligence, yet an estimated £100bn is still laundered annually."The agency added:
"When FATF examiners arrive in the UK, they may ask how much of that risk is really being reduced by the UK's controls, intelligence and enforcement, and how quickly."
What examples is the Treasury seeking?
The first phase of the FATF review allows the UK government to present evidence of how effectively it handles and prevents money laundering and financial crime. The Treasury is requesting case studies from 2022 onwards showing instances where firms rejected or terminated relationships with potentially high-risk clients, as well as cases where company intervention triggered state investigations or prosecutions.
Officials are also asking for examples where firms identified red flags in customer profiles and subsequently changed their client acceptance criteria as a result. The Treasury is specifically seeking case studies that demonstrate "tangible outcomes," "innovation in approach or delivery," and "collaboration across organisations or sectors".
What is the broader context?
The UK's anti-money-laundering regime has faced sustained scrutiny following high-profile cases involving illicit finance. An investigation revealed people smugglers use UK-registered firms to process payments for illegal Channel crossings, exposing gaps in the system's ability to disrupt smuggling networks. Additionally, the government launched a £30m High Street organised crime unit after investigations showed gangs using retail premises for drug dealing, money laundering, and child exploitation.
A Treasury spokesperson said:
"We take firm and coordinated action across government and industry to crack down on economic crime. We have introduced new strategies, enhanced enforcement capabilities and increased funding designed to disrupt those seeking to abuse the UK economy. As you would expect, the government regularly engages with industry on this - and preparations for the FATF assessment in 2027 are no different."
What happens next?
The Treasury's case-study submission deadline is 7 September 2026. Following the October submission of the government's evidence package, the FATF assessment team will conduct its on-site visit to the UK in June 2027. The UK's evaluation is expected to be formally adopted at the 2028 FATF plenary meeting, completing the fifth-round review cycle that began with the 2018 assessment.
Key Facts
- The National Crime Agency estimates £100bn is laundered through or within the UK annually
- The Treasury's case-study submission window closes on 7 September 2026
- FATF's on-site assessment visit is scheduled for June 2027
- The UK's previous FATF evaluation in 2018 raised significant concerns about anti-money-laundering effectiveness
- The updated FATF methodology now focuses on demonstrating that rules work in practice, not merely on paper
