Key Takeaways
- • The UK Financial Conduct Authority has imposed restrictions on six private credit and property lenders over concerns about their anti-money laundering (AML) controls, according to AML Intelligence.
- • The restrictions limit new customer onboarding and new lending arrangements, and in some cases restrict payments from existing customers.
- • The six firms are Kingscrown Finance Ltd, MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd, Grosvenor Funding (North West) Ltd and Abbital Ltd.
- • All six are Annex 1 firms, which must register with the FCA for AML supervision but are not fully authorised financial services firms.
- • The action follows the FCA's August information requests to around 900 Annex 1 firms and the collapse of property lender Market Financial Solutions earlier in 2026.
Summary
Britain's Financial Conduct Authority (FCA) has imposed restrictions on six private credit lenders over concerns about their anti-money laundering controls, according to AML Intelligence. The measures limit the firms' ability to take on new customers and enter into new lending arrangements, and in some cases restrict payments from existing customers. The restrictions differ by firm and include limits on lending activity, customer payments, and requirements for independent reviews of anti-money laundering systems.
The six firms are Kingscrown Finance Ltd, MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd, Grosvenor Funding (North West) Ltd and Abbital Ltd. All fall under a category known as Annex 1 firms. These businesses must register with the FCA for anti-money laundering supervision, but this registration does not make them fully authorised financial services firms, and the regulator's oversight is focused on compliance with AML requirements rather than broader conduct standards.
The FCA has increased scrutiny of Annex 1 firms amid concerns about financial crime risks, including weaknesses in internal controls and the use of complex business structures in unregulated lending. In August, the watchdog said it had sent information requests to around 900 firms in the category to better understand their activities, business models and potential risks. The increased scrutiny follows the collapse of UK property lender Market Financial Solutions earlier in 2026, which added to concerns about lenders operating outside the FCA's wider authorisation and regulatory framework.
The watchdog has also reminded regulated financial firms to conduct due diligence when dealing with Annex 1 businesses, including checking their registration status and assessing the associated risks. The regulator has warned that firms seeking registration should expect closer scrutiny and longer application assessments. For the affected firms, the restrictions could limit new lending activity while they address the regulator's concerns. The source article was cut off before detailing the next steps for the six firms.
The six firms are Kingscrown Finance Ltd, MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd, Grosvenor Funding (North West) Ltd and Abbital Ltd. All fall under a category known as Annex 1 firms. These businesses must register with the FCA for anti-money laundering supervision, but this registration does not make them fully authorised financial services firms, and the regulator's oversight is focused on compliance with AML requirements rather than broader conduct standards.
The FCA has increased scrutiny of Annex 1 firms amid concerns about financial crime risks, including weaknesses in internal controls and the use of complex business structures in unregulated lending. In August, the watchdog said it had sent information requests to around 900 firms in the category to better understand their activities, business models and potential risks. The increased scrutiny follows the collapse of UK property lender Market Financial Solutions earlier in 2026, which added to concerns about lenders operating outside the FCA's wider authorisation and regulatory framework.
The watchdog has also reminded regulated financial firms to conduct due diligence when dealing with Annex 1 businesses, including checking their registration status and assessing the associated risks. The regulator has warned that firms seeking registration should expect closer scrutiny and longer application assessments. For the affected firms, the restrictions could limit new lending activity while they address the regulator's concerns. The source article was cut off before detailing the next steps for the six firms.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.