Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the effectiveness of anti money laundering controls in bureaux de change and money service businesses.

The latest National Risk Assessment of Money Laundering and Terrorist Financing, published in July 2025, confirms that Money Service Businesses (MSBs) remain high risk for both money laundering and terrorist financing, unchanged from the 2020 rating. The report can be found here:

National risk assessment of money laundering and terrorist financing 2025 - GOV.UK

The Government recognises the importance of targeting anti-money laundering (AML) activity at the highest-risk sectors as part of a risk-based approach. That is why the latest amendments to the Money Laundering Regulations (MLRs), due to be laid in 2026, will make the MLRs more proportionate and effective by ensuring that so-called ‘Know Your Customer’ requirements on regulated businesses such as MSBs are clearer and more targeted at high-risk activity.

HMRC is the AML supervisor for MSBs. While we cannot comment on individual cases, HMRC provides HM Treasury with data on the number and risk profile of MSBs operating in the UK, as well as information on how it assesses and responds to MSB-related risks. This information is published in HM Treasury’s annual anti-money laundering and counter-terrorist financing supervision report, the latest version of which is available here:

Anti-money laundering and countering the financing of terrorism: Supervision Report 2023-24 - GOV.UK

HMRC also publishes details of penalties it has issued to businesses for non-compliance with the MLRs. The information for the 2024-25 financial year can be found here:

Businesses that have not complied with the money laundering regulations (2024 to 2025) - GOV.UK

According to this data, in 2024-25 16 MSBs were fined a total of £50,276 for failures in: the provision of registration information; notifying HMRC of material change; having the correct policies, controls and procedures; conducting due diligence; record keeping; and providing requested information or documents. HMRC also applies a range of non-financial penalties, including preventing businesses from trading through suspension or cancellation of their supervisory registration, to address risks in its supervised sectors.