Government publishes fourth UK National Risk Assessment
The UK government published its fourth National Risk Assessment (NRA) of Money Laundering and Terrorist Financing on 17 July 2025, offering a comprehensive evaluation of current and emerging threats facing the UK’s financial system. The report, jointly issued by HM Treasury and the Home Office, reflects the UK’s commitment to safeguarding financial integrity in an era of rapid technological change and global instability.
The 2025 assessment highlights that the UK remains a prime target for illicit finance due to the openness and complexity of its economy. While the government has made progress in tightening controls, the report warns that criminals continue to exploit vulnerabilities in professional services, property transactions and high-volume cash networks. Trust and company service providers (TCSPs), estate agents and certain segments of the legal sector were again flagged as particularly susceptible to misuse.
A key theme in this year’s NRA is the role of emerging technologies. Artificial intelligence, digital identity systems, and blockchain tools have created both opportunities and risks. While these technologies can enhance detection and monitoring, they may also be exploited to create synthetic identities, manipulate due diligence processes, and obscure the origin of funds. The assessment specifically mentions the use of deepfakes and AI-generated documents as a growing concern for compliance teams across all regulated sectors.
Terrorist financing, although not as financially significant as broader money laundering activity, remains a persistent threat. The report identifies methods such as the misuse of charities, international transfers via informal value systems, and small-scale crowdfunding as areas requiring close scrutiny.
The 2025 NRA also reinforces the importance of a robust, risk-based approach across all supervised sectors. Firms are expected to adapt their policies and controls in line with evolving threats, and to maintain strong due diligence – particularly when dealing with high-risk jurisdictions or politically exposed persons. Enhanced cooperation between law enforcement, regulators and private institutions is cited as essential to strengthening the UK’s overall response.
In light of recent legislative changes, such as the Economic Crime and Corporate Transparency Act, the NRA underscores the need for organisations to remain vigilant and compliant. Businesses must ensure that their risk assessments are up to date, their staff appropriately trained, and their reporting obligations fulfilled in a timely and accurate manner.
The 2025 National Risk Assessment serves not just as a diagnostic tool, but as a call to action. As the financial crime landscape becomes more complex, proactive engagement, regulatory alignment and technological investment will be vital to preserving the integrity of the UK’s financial system.
Practitioners within the AML supervision regime should take note and should use all the resources available on our AML hub, including risk assessment, reporting obligations and sanctions guidance.
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