This post was originally published on fca.org.uk
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.
Restrictions placed on 6 unregulated lenders, known as Annex 1 firms over concerns about their anti-money laundering policies, controls and procedures.
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.
