Restrictions have been placed on 6 unregulated lenders, known as
Annex 1 firms, after the Financial Conduct Authority (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 customers or do new
business with existing customers, including extending existing
credit.
This action forms part of the FCA's enhanced oversight of Annex 1
firms. These firms operate in sectors that can present a
heightened risk of money laundering and other financial crime and
are required to register with the FCA for supervision under the
Money Laundering Regulations. They are not authorised or subject
to wider FCA regulation.
The FCA has previously warned Annex 1 firms that they
will be subject to increased scrutiny. They must be able to
demonstrate they understand the financial crime risks they face
and have effective systems and controls in place to manage those
risks, or face action.
More widely, the FCA is assessing responses to an information
request sent to around 900 registered Annex 1 firms to identify
and disrupt financial crime risks and determine where further
action is needed.
The FCA has also reminded regulated
firms that, when dealing with Annex 1 firms, they must
carry out due diligence to understand the firm's business, in
accordance with legislative requirements. This includes seeking
direct confirmation from the firm of its registration status,
conducting independent checks of the information it provides, and
understanding and managing any risks.
Registration under the Money Laundering Regulations is not a
substitute for regulated firms carrying out their own appropriate
due diligence.
Steve Smart, executive director lead for fighting financial crime
at the FCA, said:
We have warned Annex 1 firms that they face increased scrutiny.
They must demonstrate they can manage the money laundering risks
they face. Where they cannot satisfy us, we will intervene.
Notes to editors
-
Voluntary restrictions were
imposed on Kingscrown Finance Ltd on 21 April 2026, with
further voluntary restrictions imposed on 25 September 2026.
The further restrictions limit how Kingscrown may receive
payments from existing customers and require an orderly
wind-down of its existing loan book.
- On 7 October 2026, voluntary restrictions were imposed on
MOMSB Ltd and Momentus Capital Ltd. The restrictions prevent the
firms from taking on new customers or entering into new lending
arrangements subject to limited exceptions, restrict the
circumstances in which they may accept payments from existing
customers, and require an independent review of their anti-money
laundering framework.
- On 9 October 2026, voluntary restrictions were imposed on
Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd. The
restrictions prevent the firms from taking on new customers or
entering into new lending arrangements, restrict the
circumstances in which they may accept payments from existing
customers, and require an independent review of their anti-money
laundering framework.
- On 15 October 2026, voluntary restrictions were imposed on
Abbital Ltd. The restrictions specify the circumstances in which
Abbital may take on new customers, enter into new lending
arrangements or accept payments from existing customers. They
also require an independent review of Abbital's anti-money
laundering systems and controls.
- Fighting financial crime is one of the FCA's strategic
priorities.
