Anti Money Laundering (AML) rules in 2026: what’s changing for home movers

The National Crime Agency estimates that criminals launder over £100 billion through the UK every year, with around £10 billion of that going through property. That’s why your conveyancer has to check where your money comes from. These checks protect you, too: they stop you buying a home that could later be taken away because it was bought with dirty money.

The checks have also slowed the moving process. Propertymark says conveyancing now takes about 60% longer than it did in 2007, largely because buyers are asked to repeat the same checks. The 2026 rules aim to reduce unnecessary box-ticking and focus more closely on the moves that need deeper checks.

The best way to avoid delays is to be prepared early and keep us informed about anything that may need additional explanation.

We will carry out digital identity and source of funds checks as part of the process. In some cases, we may also need supporting information to help us understand how your deposit was built up or received, particularly where funds come from sources such as gifts, inheritances, business proceeds or assets held overseas.

If someone is gifting part of your deposit, we will also need to understand the source of their funds.

The key is simply to flag anything unusual early so we can request the right information at the right time and keep your transaction moving.

It updates the existing 2017 rules rather than replacing them. HM Treasury laid it before Parliament on 25 March 2026. Most of it takes effect 21 days after it’s signed, in late June or early July. A few crypto-related parts come later, in 2027.

It is intended to do three things: support a more effective risk-based approach to compliance, rather than just ticking boxes; help ensure that the level of scrutiny applied is proportionate to the risks presented by a transaction; and close loopholes that have allowed some overseas trusts to obscure UK property ownership.

Conveyancers are required to apply enhanced due diligence where a transaction presents a higher risk of money laundering or financial crime. This is already a risk-based requirement and remains unchanged in principle.

The updated rules are intended to support greater consistency in how risk is assessed, so that enhanced checks are focused where the risk factors justify them, rather than being applied in a purely formulaic way.

What it means for you: Most standard residential purchases will continue to follow the usual verification process. Where additional risk factors are present, we may need to carry out further checks to understand the transaction properly.

The new rules make some changes to when enhanced due diligence measures are automatically required for certain higher-risk jurisdictions. However, firms must still take a risk-based approach when assessing overseas connections.

Where funds, assets, residency or business interests involve another country, we may need to consider factors such as the level of financial crime risk associated with that jurisdiction, the availability and reliability of supporting documentation, and whether additional verification is required.

What it means for you: Overseas connections do not automatically prevent a transaction from proceeding, but they can lead to additional enquiries and checks depending on the circumstances. The focus remains on understanding the overall risk profile of the transaction rather than applying a one-size-fits-all approach.

HMRC keeps a register of trusts. A gap that allowed some older overseas trusts stay off it closes in 2026, with a new exemption for tiny, low-risk trusts.

What it means for you: most buyers and sellers aren’t affected. If a trust is part of your move, expect more questions about how it works.

The new rules sit inside a bigger shift toward reusable digital ID: proving who you are once, instead of sending your passport to four different people.

What it means for you: over the next year or two, this gets much simpler. MyEden already  requires you to prove your ID digitally, and our MyEden customer platform allows you to sign documents and keep everything in one place.  We use Thirdfort for ID checks, so you do it once, securely, with nothing to post. Thirdfort is certified under the government’s Digital Identity and Attributes Trust Framework (DIATF), so its checks meet a recognised national standard for proving who you are.

You will still need to provide information to help us understand the source of your deposit. This is part of our legal and regulatory obligations under the UK anti-money laundering regime, including the Proceeds of Crime Act 2002.

The level of information we need depends on your circumstances. A straightforward savings history will usually require less explanation than more complex or unusual sources of funds, such as business sales, overseas assets or large one-off payments.

We use digital verification tools alongside supporting documents where needed to build a complete picture of your funds.

What it means for you: In many cases, the process is familiar. The key is to be prepared to provide clear information about how your deposit has been accumulated or received.

Information we may ask for include:

• Recent bank statements showing the build-up of savings
• Payslips or employment income evidence
• Completion statements from a property sale
• Probate documents for inherited funds
• Gift letters and source of funds evidence from any donor
• Investment or pension statements
• Documentation for one-off payments (e.g. redundancy or compensation)

The new rules do not require a fundamental change to how we work. We already have robust anti-money laundering procedures in place, including ongoing staff training, digital verification tools and risk-based source of funds checks.

As the new requirements come into force, we will continue to review and refine our processes to ensure they remain effective, proportionate and as straightforward as possible for our clients.

Planning a move later in 2026? Speak to us early and we can help make the process as smooth as possible.