Top AML compliance trends in the UK: Enforcement highlights from 2025

In 2025, UK regulators significantly intensified their enforcement of Anti-Money Laundering (AML) compliance, issuing fines across the financial sector, law firms, and professional services. From high-profile banks to smaller legal practices, the message was clear: policies on paper are no longer enough. Firms must demonstrate active, ongoing compliance, robust risk management, and effective internal controls.

This year has seen a marked increase in both the frequency and visibility of AML fines, with penalties ranging from thousands to tens of millions of pounds. In this post, we break down the largest fines, the most common compliance failures, and emerging trends shaping the UK’s financial crime enforcement landscape in 2025.ed.

🔎 The state of AML enforcement in 2025

The UK’s regulatory landscape in 2025 has become more unforgiving for non-compliance. While the FCA continues to issue high-value fines across the banking sector, the SRA has increasingly targeted law firms for failures in AML controls, training, and governance.

By October 2025, the SRA had issued 35 fines totalling more than £565,000, with individual penalties ranging from £658 for smaller firms to over £300,000 for serious breaches.

Meanwhile, the FCA’s total AML fines reached £23 million, and across all UK sectors, total fines for AML breaches surpassed £1.5 million by April – a significant indicator of rising enforcement activity.

⚖️ Largest UK AML fines in 2025

The Barclays fine remains the UK’s largest in 2025, with the FCA citing long-term deficiencies in financial crime controls. Similarly, Monzo’s £21 million penalty reflects the regulator’s ongoing scrutiny of challenger banks’ AML frameworks, highlighting that innovation cannot come at the expense of compliance.

📈 Key enforcement trends that have shaped 2025

1. Shift from static compliance to active governance

Regulators are demanding ongoing evidence that AML frameworks are functioning in real time. Firms must demonstrate active monitoring, up-to-date risk assessments, and board-level engagement.

2. Rising enforcement in the legal and professional sectors

While banks remain under scrutiny, law firms and estate agents are now firmly in regulators’ sights. The SRA’s steady increase in fines shows its determination to enforce AML obligations even among smaller firms.

3. Focus on PEPs and Beneficial Ownership

Firms are being penalised for failing to properly identify and document Politically Exposed Persons and UBOs, particularly in property transactions, a known vulnerability for money laundering.

4. Increased frequency, lower value

Although the average fine value has decreased, the frequency of enforcement has grown sharply. This signals a broader crackdown, with regulators pursuing a greater number of smaller cases to reinforce deterrence.

5. “Prove it” culture of compliance

Regulators now expect firms not only to have AML policies but to prove their operational effectiveness through monitoring records, internal audits, and demonstrable training programs.

💡 Lessons for compliance teams

To stay ahead of regulators and avoid costly penalties, firms must:

• Use RegTech solutions like NorthRow to automate verification, monitor ongoing risk, and maintain auditable compliance records.
• Conduct regular, documented AML risk assessments tailored to their business activities.
• Maintain centralised governance and oversight of compliance activities.
• Implement robust client onboarding systems with live identity and business verification (KYC & KYB).
• Train staff continuously, ensuring they understand AML risks in their specific roles.

NorthRow helps regulated businesses strengthen their AML frameworks through automated KYC, KYB, and ongoing monitoring – ensuring compliance that’s not only efficient but defensible.

👉 Book a free demo to see how you can reduce financial crime risk and stay one step ahead of regulators in 2026.