FCA restricts six lenders over money laundering control concerns
Six unregulated lenders have had new customer and lending restrictions placed on them after the City watchdog raised concerns about weak anti-money laundering controls.
The Financial Conduct Authority has placed restrictions on six unregulated lenders after raising concerns about their anti-money laundering policies, controls and procedures. The firms affected are Kingscrown Finance Ltd, MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd, Grosvenor Funding (North West) Ltd and Abbital Ltd.
All six are known as Annex 1 firms. These businesses operate in sectors that can carry a higher risk of money laundering and other financial crime, and they must register with the FCA for supervision under the Money Laundering Regulations. They are not authorised by the FCA and are not subject to its wider regulatory regime.
What the restrictions mean
The restrictions were imposed voluntarily by each firm at the FCA’s request. They generally limit the firms’ ability to take on new customers or carry out new business with existing customers, including extending existing credit.
According to the FCA, Kingscrown Finance Ltd had voluntary restrictions imposed on 21 April 2026, followed by further restrictions on 25 September 2026 limiting how it can receive payments from existing customers and requiring an orderly wind-down of its loan book.
MOMSB Ltd and Momentus Capital Ltd had restrictions imposed on 7 October 2026, preventing new customers and new lending arrangements subject to limited exceptions, restricting payments from existing customers, and requiring an independent review of their anti-money laundering framework.
Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd had restrictions imposed on 9 October 2026, also preventing new customers and new lending, restricting payments from existing customers, and requiring an independent review of their controls.
Abbital Ltd had restrictions imposed on 15 October 2026, specifying the circumstances in which it may take on new customers, enter new lending arrangements or accept payments from existing customers, alongside an independent review of its systems.
Part of wider scrutiny
The FCA said the action forms part of its enhanced oversight of Annex 1 firms, which it has previously warned will face increased scrutiny. Firms must be able to demonstrate they understand the financial crime risks they face and have effective systems in place, or face action.
The regulator is separately assessing responses to an information request sent to around 900 registered Annex 1 firms, aimed at identifying and disrupting financial crime risks and determining where further action is needed.
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.”
Due diligence reminder for regulated firms
The FCA has also reminded regulated firms dealing with Annex 1 firms that they must carry out their own due diligence under legislative requirements. This includes seeking direct confirmation of a firm’s registration status, conducting independent checks of information provided, and understanding and managing any risks involved. The FCA stressed that registration under the Money Laundering Regulations is not a substitute for a regulated firm’s own checks.
What happens next
The FCA continues to review responses from the wider pool of around 900 registered Annex 1 firms and has said further action will follow where firms cannot demonstrate adequate anti-money laundering controls. Customers of the six named firms may be affected by limits on new borrowing or changes to how payments on existing loans are handled.