UK National Risk Assessment 2025: The Evolving Threats of Money Laundering & Terrorist Financing

The UK government has published its National Risk Assessment of Money Laundering and Terrorist Financing 2025, presenting a comprehensive evaluation of current and emerging threats that could undermine the integrity of the UK’s financial system. As the UK remains one of the world’s largest and most open economies, this openness brings both opportunity and exposure to financial crime.

The 2025 assessment identifies a high and evolving risk landscape, shaped by technological innovation, geopolitical volatility and increasingly sophisticated criminal networks. Retail banking, wholesale banking and wealth management remain high-risk sectors for money laundering, largely due to their ubiquity, transactional volume, and attractiveness for layering illicit funds. The report notes that criminals continue to exploit the declining face-to-face banking environment and the rise of digital onboarding, raising concerns around identity fraud, synthetic identities and abuse of online-only accounts.

A key theme of the 2025 report is the significant growth in cryptoasset-related money laundering risks. Cryptoasset service providers are now assessed as posing a high money laundering risk, reflecting their increasing use by organised crime groups. Stablecoins such as Tether have overtaken Bitcoin as the preferred means of laundering criminal proceeds due to their price stability and fast transaction speeds. Peer-to-peer exchanges, decentralised finance platforms and privacy-enhancing technologies further complicate detection and enforcement efforts.

The report also highlights the persistent threat from professional enablers in legal and accountancy services, who may be complicit, negligent or exploited to set up opaque company structures that obscure beneficial ownership. This vulnerability continues to be a key risk factor for enabling high-end money laundering, sanctions evasion and kleptocracy.

Meanwhile, the terrorist financing threat remains “substantial”, with risks increasingly associated with small-scale, low-cost attacks financed through legitimate income, online crowdfunding platforms, cryptoassets and pre-paid cards. The assessment acknowledges that while terrorist financing activity often involves modest amounts, the consequences for national security remain severe.

The NRA underscores that cash-based money laundering remains prevalent, with an estimated £12 billion in criminal cash generated annually in the UK. Organised crime groups continue to use cash-intensive businesses such as barber shops, nail salons, car washes and retail outlets to disguise the origins of illicit funds. The Post Office network has also been exploited for cash deposits, with suspicious activity concentrated in urban centres including London, Birmingham and Glasgow.

In response, the government is reinforcing its commitment to tackle economic crime. Legislative reforms through the Economic Crime and Corporate Transparency Act 2023 and the introduction of the Data (Uses and Access) Act 2025 aim to tighten oversight of company formation, strengthen financial crime supervision, enhance information sharing, and bolster law enforcement capabilities.

The report also points to robust international partnerships, including cooperation with the UAE and enhanced enforcement around correspondent banking and crypto exchanges, as critical to addressing cross-border risks.

The National Risk Assessment 2025 provides essential guidance for regulated firms, law enforcement and supervisors. It calls on the private sector to update their own risk assessments and adapt controls to the latest typologies, particularly focusing on cryptoasset exposure, cross-border transactions, corporate structures, and professional service risks.

This insight reinforces the UK’s leadership in combating illicit finance and protecting its reputation as a safe and attractive place to live, work and invest.

Read the full report here.