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HM Treasury open consultation: Improving the effectiveness of the Money Laundering Regulations

What has happened?

On 11 March 2024, HM Treasury released a consultation aimed at enhancing the effectiveness of the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). These anti-money laundering regulations impose obligations on various businesses to identify and prevent money laundering and terrorist financing activities.

What are the key points of the consultation?

1. Addressing issues identified in previous reviews and consultations to improve the MLRs' effectiveness.

2. Incorporating feedback from stakeholders to reduce regulatory burdens and enhance effectiveness in combating economic crime.

3. The consultation revolves around four main themes:

    • Making customer due diligence more proportionate and effective.
    • Strengthening coordination between systems to improve the dissemination of information about risks, threats, and tools.
    • Providing clarity on the scope of MLRs concerning financial thresholds and the activities covered by trust and company service providers (TCSPs).
    • Reforming registration requirements for the Trust Registration Service to enhance the central register of beneficial ownership of taxable trusts.

Additionally, HM Treasury is conducting a survey on the cost of compliance with the anti-money laundering regulations to better understand how regulated businesses comply and assess the impact of future changes.

The consultation highlights HM Treasury’s commitment to improving the MLRs with the aim of reducing money laundering, as set out in the Economic Crime Plan 2023-26. Regulated firms and other stakeholders are encouraged to respond to the consultation to ensure the Treasury make evidence-based policy decisions. 

Firms can respond here: HM Treasury - Improving the Effectiveness of the Money Laundering Regulations (

How can we help you? 

At Thistle Initiatives, we've been supporting firms for over a decade as a trusted compliance and anti-money laundering regulations advisor. Our team of specialists is dedicated to assisting firms in meeting and complying with FCA regulations. Whether you need help with financial crime arrangements or have general regulatory inquiries, we're here to provide guidance and support.

Contact our specialist financial crime team now to schedule a free consultation. Get in touch with us by calling 020 7436 0630 or sending an email to