FCA restricts 6 firms following concerns over anti-money laundering controls
AI Analysis
The FCA has imposed voluntary business restrictions on six unregulated Annex 1 lenders after identifying concerns about their anti-money laundering policies, systems and controls during registration assessments. The action signals intensified supervisory scrutiny of approximately 900 registered Annex 1 firms and also raises expectations for FCA-authorised firms to independently verify and risk-assess Annex 1 counterparties rather than relying on their registration status.
Key dates
- 2026-04-21
- Voluntary restrictions were imposed on Kingscrown Finance Ltd.
- 2026-09-25
- Further voluntary restrictions were imposed on Kingscrown Finance Ltd, including limits on receiving payments from existing customers and an orderly wind-down requirement.
- 2026-10-07
- Voluntary restrictions were imposed on MOMSB Ltd and Momentus Capital Ltd, including restrictions on new customers, new lending arrangements and certain payments from existing customers, together with independent AML-framework reviews.
- 2026-10-09
- Voluntary restrictions were imposed on Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd, including restrictions on new customers, new lending arrangements and certain payments from existing customers, together with independent AML-framework reviews.
- 2026-10-15
- Voluntary restrictions were imposed on Abbital Ltd, including specified conditions for taking on customers, entering into lending arrangements and accepting payments, together with an independent review of its AML systems and controls.
- 2026-10-23
- The FCA announced the restrictions and reiterated its enhanced oversight of Annex 1 firms and due-diligence expectations for regulated firms dealing with them.
Suggested considerations
- Annex 1 firms should consider reviewing their business-wide AML risk assessment, customer and beneficial-owner due diligence, ongoing monitoring, suspicious-activity escalation, governance, management information, resourcing and independent-testing arrangements against the Money Laundering Regulations 2017.
- Annex 1 firms seeking registration or under FCA assessment should consider ensuring that policies and controls are tailored to their actual lending activities, customer base, delivery channels and growth plans, rather than relying on generic or group-level documentation.
- The six named firms should consider mapping their operational processes, customer communications, payment arrangements and lending activity to the precise terms of their voluntary restrictions and preserving evidence of compliance with those terms.
- FCA-authorised firms should consider identifying all Annex 1 counterparties and refreshing onboarding and periodic-review procedures to obtain direct confirmation of registration, conduct independent verification, understand the counterparty's business model and assess whether its AML controls create heightened relationship risk.
- Regulated firms should consider recording the rationale for accepting, continuing or restricting relationships with Annex 1 firms and escalating discrepancies between a firm's registered activities, actual activities, ownership, governance or AML framework.
- Groups with multiple Annex 1 entities should consider documenting entity-specific risk assessments and controls, since group-wide or off-the-shelf procedures may not demonstrate that each entity manages its own risks effectively.
- Lenders and their service providers should consider contingency arrangements for restricted firms, including payment handling, loan-book servicing, customer communications and orderly wind-down scenarios.
What changed
Kingscrown Finance Ltd is subject to restrictions limiting how it may receive payments from existing customers and requiring an orderly wind-down of its existing loan book. MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd are restricted from taking on new customers or entering into new lending arrangements, subject to the specified exceptions; restrictions also apply to accepting payments from existing customers, and the firms must obtain independent reviews of their AML frameworks. Abbital Ltd may take on customers, enter into lending arrangements and accept payments only in the circumstances specified by its restriction, and must obtain an independent review of its AML systems and controls. The FCA has separately reminded authorised firms that
Compliance impact
The restrictions can materially interrupt lending, customer onboarding, payment collection and loan-book servicing, and in Kingscrown's case require an orderly wind-down. The FCA's approach also indicates that inadequate AML controls can prevent or constrain registration and may lead to intervention even where a firm is not otherwise FCA-authorised; regulated counterparties face heightened onboard
Who is affected
Related regulations
References
AI-generated analysis. May contain errors or omissions — verify with the original FCA source before acting. Full disclaimer.
What the FCA said
Restrictions have been placed on 6 unregulated lenders, known as Annex 1 firms, after the FCA raised concerns about their anti-money laundering policies, controls and procedures while assessing their applications. The restrictions were imposed by the FCA on each firm’s request and limit their ability to take on new…
Extract from FCA . Read the full notice at the source for the authoritative text.