FCA restricts six lenders over anti-money laundering control concerns

The Financial Conduct Authority has placed restrictions on six unregulated lenders over concerns about their anti-money laundering (AML) controls. The restrictions cover new business and, in some cases, payments from existing customers.

The firms asked for the restrictions to be imposed themselves while the regulator assessed their applications. The FCA's concerns relate to the firms' AML policies, controls and procedures. It has not found that any of them carried out money laundering.

How each firm is affected

Kingscrown Finance Ltd was first restricted on 21 April 2026. It was barred from taking on new customers or doing new business with existing ones, including extending existing loans. Further measures on 25 September limited how it can receive customer payments and required it to wind down its existing loan book in an orderly way.

MOMSB Ltd and Momentus Capital Ltd were restricted on 7 October. They cannot take on new customers or enter new lending arrangements, with limited exceptions. There are also limits on when they can accept customer payments, and both must have independent reviews of their AML frameworks.

Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd were restricted on 9 October on similar terms: no new customers or lending arrangements, limits on accepting customer payments, and independent AML reviews.

Abbital Ltd was restricted on 15 October. Its requirements set out when it may take on customers, enter lending arrangements or receive payments, and it must also have an independent review of its AML systems and controls.

Registration is not authorisation

Lenders that are not otherwise authorised by the FCA, known as Annex 1 businesses, must register with the regulator for supervision under the Money Laundering Regulations. This registration covers AML supervision only. It is not the same as full authorisation under the Financial Services and Markets Act, and it does not bring firms under the FCA's wider conduct rules.

In an earlier statement on Kingscrown, the FCA said the firm offered business and investment lending, including property investment, buy-to-let and HMO finance, and had never been authorised or registered with the regulator.

A wider crackdown

The action is part of growing FCA scrutiny of Annex 1 lenders. In March, the regulator reminded regulated firms that deal with these lenders to check their registration status, verify information independently and understand the risks involved. It stressed that registration alone does not replace those checks.

In August, the FCA said it had sent an information request to around 900 firms. This followed work with 300 businesses in late 2025 and means it has now contacted every registered Annex 1 firm. The review looks at firms' activities, business models and risks to identify where further action may be needed.