FCA restricts six unregulated lenders over anti-money laundering controls
Regulated firms that deal with these lenders are told registration is no substitute for their own due diligence.
What the FCA did
The FCA said on 23 October 2026 that it had placed restrictions on six unregulated lenders, known as Annex 1 firms, after raising concerns about their anti-money laundering policies, controls and procedures while assessing their applications.1
The restrictions were imposed at each firm's request. They limit the firms' ability to take on new customers or do new business with existing customers, including extending existing credit.1
The six firms
The FCA named the firms. Kingscrown Finance Ltd has been under restrictions since 21 April 2026; further restrictions from 25 September require an orderly wind-down of its existing loan book.1
MOMSB Ltd and Momentus Capital Ltd were restricted on 7 October, and Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd on 9 October. All four must have their anti-money laundering framework independently reviewed. Abbital Ltd's restrictions, from 15 October, also require an independent review.1
Mortgage Solutions, which reported the action, described the firms as property, bridging and development lenders. The FCA's release does not describe their businesses.2,1
What Annex 1 means
Annex 1 firms register with the FCA for supervision under the Money Laundering Regulations. They are not authorised or subject to wider FCA regulation, and the FCA says they work in sectors that can present a heightened risk of money laundering.1
Steve Smart, the FCA's executive director lead for fighting financial crime, 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."1
What it means for brokers
The FCA told regulated firms that deal with Annex 1 firms to check them directly: confirm registration status with the firm itself and test what it says independently. "Registration under the Money Laundering Regulations is not a substitute for regulated firms carrying out their own appropriate due diligence," the regulator said.1
For a broker placing an unregulated bridge, that check belongs on the case file alongside the lender's terms.
What's next
The FCA is assessing responses to an information request sent to around 900 registered Annex 1 firms, to find where further action is needed. It has not said when it will report.1
Sources
- 1FCA, “FCA restricts 6 firms following concerns over anti-money laundering controls (23 October 2026)”The restrictions, the six named firms and their dates, Annex 1 status, Steve Smart's comments, due diligence for regulated firms and the 900-firm information request.
- 2Mortgage Solutions, “Six specialist lenders hit with FCA restrictions over anti-money laundering weaknesses (23 October 2026)”Its descriptions of the firms' businesses.
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