The UK Raises Money Laundering Threshold from £1,000 to £3,000

The UK legislature has passed an amendment to the Proceeds of Crime Act (POCA) 2002, where the UK government has officially increased the threshold amount for certain offenses from £1,000 to £3,000 under the Proceeds of Crime Act 2002 (POCA).

Previously, POCA order 2022 raised this threshold in section 339A(2) from £250 to £1,000, and now to £3,000.

This new increase in threshold is part of the UK’s ongoing effort to ensure AML laws are proportionate and do not place unnecessary burdens on businesses. These laws protect the integrity of the financial system worldwide.

The Secretary of State has made the order under his power by section 339(7) of the POCA 2002, which was affirmed by the parliament as required under 459(6)(a) of the Act.

A draft version was presented in parliament, and both the House of Commons and the House of Lords formally approved it by a resolution.

This new increase in threshold is part of the UK’s ongoing effort to ensure AML laws are proportionate and do not place unnecessary burdens on businesses while still protecting the financial system.

The order will take effect after 21 days from July 31, and the updated threshold will apply across England, Wales, Scotland, and Northern Ireland.

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Banks and financial institutions can now process transactions up to £3,000 within compliance standards of Anti Money Laundering (AML), under sections 327 to 329 of POCA.  Section 339A(2) gives a flexible approach to handle lower-value suspicious transactions while remaining compliant with the regulations.

Similarly, section 339A(6A) permits regulated businesses (such as law firms, accountants, crypto exchanges) to return up to £3,000 to clients when ending a contract without violating money laundering regulations.

There have been regulatory threshold shifts, such as those outlined in the PCOA orders of 2022 and 2025. Businesses and financial institutions need to update their internal controls and policies to align with the new updates.

AML Watcher helps you stay ahead with real-time alerts on legal changes. With automated threshold tracking and intelligent risk detection, it enables you to stay ahead of the evolving regulatory landscape.