If you work in a sector that falls under the Money Laundering Regulations, you could be at risk of a fine from HM Revenue & Customs (HMRC), and the latest figures show that many businesses are falling foul of the rules.
Between October 2024 and March 2025, HMRC fined 336 businesses more than £3.2 million for failing to comply with anti-money laundering (AML) requirements.
These are serious breaches with serious financial consequences.
Who needs to comply?
If your business is involved in any of the following, you may be legally required to register with HMRC for AML supervision:
Even if this is just a small part of your work, you might still need to register and put AML policies in place.
What happens if you do not register?
The fines for failing to register add up quickly. Typically, HMRC will charge £5,000 for every three-month period your business was supposed to be registered.
If you are over a year late, there is an additional £200 penalty for each three-month period beyond the first year.
There is also a standard £350 administration charge. Depending on your gross profit, whether you voluntarily disclose the breach, and how quickly you pay, HMRC may reduce the penalty, but it remains a significant risk.
Act now before HMRC finds you
HMRC takes a much tougher stance if they find the breach before you disclose it yourself. Acting voluntarily, on the other hand, can significantly reduce the size of any fine.
If you are unsure whether your business should be registered for AML supervision, do not wait. We can help you assess your position, register with HMRC, and put compliant policies in place.
If you think you may already be in breach, we can also help you make a voluntary disclosure and limit the damage.
Contact our team today to protect your business from unnecessary fines and reputational risk.
