National Risk Assessment of Money Laundering and Terrorist Financing 2025

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The 2025 National Risk Assessment (NRA) is the UK’s 4th Assessment of Money Laundering (ML) and Terrorist financing (TF), jointly developed by HM Treasury and the Home Office.  

The NRA draws on information collected by the Government, supervisors, law enforcement agencies, and the private sector.  This updated assessment takes account of the latest developments and information since the previous publication in 2020.  

The NRA is an essential tool in our ongoing efforts to tackle money laundering and terrorist financing, providing a clear and comprehensive assessment of the current and emerging threats. It sets out how criminals try to move illicit funds through the UK and the risks this poses.  

The findings of the NRA are intended to equip government, law enforcement, supervisors, and regulated businesses with up-to-date risk information to enable them to take a proportionate, risk-based response to evolving threats. This helps to ensure a competitive and secure environment for business and investment. 

The NRA highlights both the progress we have made in strengthening our defences and the evolving nature of the risks we face. Since the previous assessment, the government has further enhanced its response through significant reforms, including the Economic Crime Plan 2 2023-26, expansion of public-private partnership working and legislative reforms.  

Our determination to tackle money laundering and terrorist financing remains steadfast.  In preventing funds from facilitating crime or reaching actors who will threaten our national and economic security, we work to ensure that criminal networks and terrorists are deprived of the resources they need to operate, allowing Britain to be a safer, more prosperous place to work and live. 

KEY THEMES AND FINDINGS:

  • The UK continues to be exposed to a high level of money laundering risk. Since 2020, the wider context has shifted due to increasing global insecurity, which has altered the risk landscape and the methodologies used by criminals. 
  • There is growing convergence between money laundering, kleptocracy, and sanctions evasion. Sanctioned entities and individuals have sought to obscure links to their funds by exploiting established money laundering networks. 
  • The increasing role of new technologies has contributed to the development of new methods of money laundering and terrorist financing, increasing the risk in these sectors with criminals and terrorists seeking to take advantage of these evolving tools and platforms to move and conceal illicit funds. 
  • Risks associated with cash-based money laundering in the UK remain high, including cash smuggling and the use of money mules and the exploitation of legitimate channels (including Post Offices) for inserting criminal proceeds into the banking system. 
  • The terrorist financing threat in the UK continues to be characterised by low levels of funds, often raised for basic living costs, low sophistication attacks, or for sending overseas for terrorist causes.  
  • Terrorist financing continues to exploit a wide range of mechanisms, both illicit and legitimate, increasing the potential for regulated sectors to be used to generate, store, move, and access funds for terrorist purposes.