UK Government Releases Latest National Risk Assessment on Money Laundering and Terrorist Financing

The UK Government has released its fourth National Risk Assessment (NRA) of Money Laundering and Terrorist Financing, offering an in-depth analysis of the principal threats to the country’s financial system and shedding light on the ever-evolving landscape of illicit finance. This comprehensive review is aimed at providing government departments, law enforcement, regulators, and the private sector with a clear picture of how criminal and terrorist groups may exploit vulnerabilities within the UK’s financial and professional services sectors.

The assessment stresses that while the UK’s open economy is a powerful enabler of global trade and investment, this very openness can also be manipulated by illicit actors. Officials caution that money laundering and terrorist financing are far from victimless crimes. These activities fuel serious organised crime, destabilise the economy, and ultimately threaten the country’s national security. “Money laundering and terrorist financing are not victimless crimes,” the report states, “as they can support serious criminal activity, undermine economic stability and pose risks to national security.”

The latest NRA outlines a rapidly shifting threat landscape, shaped by technological advancement, international volatility, and increasingly sophisticated criminal tactics. Of particular concern are the rising risks tied to the use of cryptocurrencies and other emerging technologies, which have proven attractive to criminals seeking to obscure the origin and destination of illicit funds. The Government has highlighted these developments as growing priorities for financial crime enforcement efforts.

The NRA is designed to be a core reference tool for the regulated sector, helping firms understand where and how their services may be targeted and offering clear guidance on how to identify and mitigate these risks. It supports the wider national strategy anchored in the 'Strong Foundations' pillar of the UK’s Plan for Change, a framework developed to block the flow of criminal money to individuals or entities that pose a threat to economic integrity and national safety.

This assessment forms an essential component of the UK’s coordinated effort to tackle economic crime, complementing a series of other strategic initiatives including the Economic Crime Plan 2023–2026, the updated Contest 2023 counter-terrorism strategy, and forthcoming Government frameworks addressing fraud and corruption. The findings of the NRA also align with international anti-financial crime standards established by the Financial Action Task Force (FATF), ensuring that the UK remains in step with global expectations for transparency, due diligence, and enforcement.

In response to the NRA, the Government has emphasised that its insights will be used to shape future policy decisions, regulatory reforms, and enforcement strategies. The objective is to ensure responses are targeted and proportionate, while maintaining the UK’s reputation as a secure, compliant, and attractive environment for legitimate commerce. “The Government has stated that the NRA will directly inform future policy, regulatory approaches and operational priorities to ensure proportionate responses while maintaining the UK’s reputation as a secure and attractive place for legitimate business.”

In line with the findings, the Gambling Commission has announced that it will undertake a review and update of its own risk assessment of the British gambling industry. This move is seen as part of a broader reassessment of how high-value customer schemes and gambling-related financial flows may be vulnerable to abuse. “The Gambling Commission has recently released findings on high-value customer schemes” and has indicated that further updates will be shared in due course.

The NRA is expected to serve as both a warning and a practical guide, reinforcing the Government’s message that economic crime remains a critical priority—and that all sectors must remain alert and prepared to respond to the challenges posed by an increasingly complex financial threat landscape.

By fLEXI tEAM