The Treasury has asked banks and law firms to hand over real examples of times they stopped illicit money from entering Britain, part of a push to show that the country’s defences against financial crime actually work in practice. Officials want cases dating from 2022 onward, with clear and demonstrable results rather than general assurances.
The timing is deliberate. The government is assembling evidence for the Financial Action Task Force, the global watchdog that judges how well countries police money laundering and terrorist financing. The UK has something to prove. A 2018 assessment left London with the unwelcome label of a hub for dirty money, and officials now have to demonstrate real improvement before inspectors arrive for an on-site review next summer, ahead of a formal assessment in 2027.
The scale of the problem is large. The National Crime Agency estimates that around 100 billion pounds is laundered through or within the UK every year, a figure that underlines why the coming review matters. The legal sector, in particular, has been rated high risk for money laundering in every assessment since 2017, which helps explain why lawyers as well as bankers are being asked to contribute.
The Treasury has set out the kind of examples it wants. It is looking for cases where firms rejected or removed high-risk clients, spotted red flags in a customer’s profile that changed how they took on business, or acted in ways that led to government investigations or prosecutions. In its own words, it wants “real-life examples with clear, demonstrable results that illustrate how the UK’s anti-money laundering, counter-terrorist financing and sanctions frameworks operate effectively in practice.”
For the banks and law firms being asked to respond, the request is both an opportunity and a test. Those with strong controls can point to concrete wins, while the exercise itself nudges the whole sector to document what works. The deadline for submissions is October 2026, giving firms a short window to pull their best cases together.
For Scotland’s financial and professional services community, which employs tens of thousands across banking, asset management and law, the review carries real weight. A poor verdict from the watchdog could mean tighter rules and heavier compliance costs, while a strong showing helps protect the reputation the sector relies on. Either way, the message from the Treasury is that the coming assessment is one the country cannot afford to fail.
