Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment his Department has made of the adequacy of (a) anti-money laundering regulations and (b) "know your customer" requirements.

The Government is committed to tackling money laundering and terrorist financing, while ensuring that the UK’s anti-money laundering regime remains effective and proportionate.

Under the Money Laundering Regulations (MLRs), banks and other regulated firms must have appropriate policies, controls and procedures to mitigate money laundering and terrorist financing risks. This includes customer due diligence, sometimes referred to as “Know Your Customer” requirements, to verify customers’ identities and understand the purpose of transactions.

The Government keeps the MLRs under review and engages closely with industry, supervisors and other stakeholders to ensure that requirements remain effective, proportionate and responsive to evolving money laundering and terrorist financing risks, making changes where appropriate.

For example, in July 2025 HM Treasury published its response to a consultation on improving the effectiveness of the MLRs, setting out reforms to close loopholes, clarify requirements and ensure customer due diligence is targeted at higher-risk activity.

Firms continue to be required to take a risk-based approach, ensuring that the extent of checks is proportionate to the money laundering and terrorist financing risks presented.