What 2026 holds for UK financial crime teams

The FCA is due to become the single supervisor for professional services. The consultation is now closed and the feedback is under consideration, but in late December, the Law Society announced that they strongly oppose the change, citing a number of strategic risks and no proven benefits.

The Law Society raised concerns about the speed of change as well as the protection of client confidentiality, specifically relating to SARs. The consultation closed on 24 December, and HM Treasury are now analysing all the responses. An update will be published in due course.

The UK is due for its next FATF mutual evaluation in 2027. The forthcoming round is driving a visible readiness programme across government, supervisors, law enforcement and industry.

The key theme is that the FATF methodology puts more weight on effectiveness rather than just having rules in place. The UK is already focusing on evidence, outcomes and consistency. The evaluation will take place in 2027, with findings likely published in 2028. There’s no immediate action required for individual firms as the evaluation assesses the UK’s overall framework, not individual firms directly.

Changes to the Economic Crime Levy were announced in last year’s Autumn Budget. From 1 April this year, changes will reflect the levy band structure, increasing the amounts payable. The current large band is being split into two, with the result being higher levy amounts particularly for those with very large UK revenues.

There are no changes to the scope or the ongoing administration of the levy. Firms should check the impact to their calculations and ensure that financial planning includes the increases from 1 April this year.

Geopolitical uncertainty means there are likely to be significant changes ahead in the sanctions world. Recent examples include naval blockades and tanker seizures, and this more assertive approach to sanctions will likely be reflected in economic and legal measures.

Sanctions are being deployed as political tools, which is a shift from the past where they have been used as punitive measures.

Firms should ensure that their sanctions screening processes are robust. Any reliance on manual updates should account for the potential for a volatile future. Automation is a stronger option wherever possible to ensure ongoing compliance.

These four themes demonstrate that 2026 will require continued vigilance, adaptability and investment in robust financial crime prevention capabilities for financial crime professionals.

The convergence of regulatory change, effectiveness-focused evaluation and operational pressures underscores that effective financial crime prevention requires both strong frameworks and continuous evolution. The ability to evidence outcomes, respond to rapid change and maintain effectiveness under pressure will prove increasingly critical.

This blog is based on the January 2026 episode of ThirdEye View, hosted by Claire Rees and Phil Roberts from ThirdEye. Claire brings extensive expertise in financial crime prevention as Global Financial Crime Regulatory Specialist, whilst Phil serves as Business Development Manager for ThirdEye in the UK, helping organisations navigate complex regulatory landscapes.