The Financial Conduct Authority has imposed voluntary restrictions on six Annex 1 lending firms — Kingscrown Finance Ltd, MOMSB Ltd, Momentus Capital Ltd, Grosvenor Funding Ltd, Grosvenor Funding (North West) Ltd and Abbital Ltd — limiting their ability to take on new customers or conduct some new business with existing ones, after raising concerns about their anti-money laundering controls during registration assessments.
Six lenders operating outside mainstream FCA authorisation have been restricted by the regulator after it identified concerns about their anti-money laundering policies, controls and procedures. The restrictions were imposed at each firm’s own request and vary in scope, but all six face limits on new customer acquisition and new lending arrangements.
The figures show how active the FCA has been in scrutinising this sector. Around 1,200 Annex 1 firms were registered with the regulator for anti-money laundering supervision as of March 2026, and 40 per cent of Annex 1 applications were rejected, withdrawn or refused in the financial year ending 31 December 2023. Annex 1 firms are registered with the FCA specifically for anti-money laundering supervision under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 — they don’t hold broader FCA authorisation, and customers can’t access the Financial Ombudsman Service on the basis of that registration alone.
On top of that, the restrictions were not all applied at once. Kingscrown Finance Ltd was first restricted on 21 April 2026, with further restrictions added on 25 September 2026 — including limits on receiving payments and a requirement to wind down its existing loan book in an orderly fashion. MOMSB Ltd and Momentus Capital Ltd were restricted on 7 October 2026, Grosvenor Funding Ltd and Grosvenor Funding (North West) Ltd on 9 October, and Abbital Ltd on 15 October 2026. Five of the six firms must also commission independent reviews of their anti-money laundering frameworks.
The FCA has warned that firms must maintain controls tailored to their own business and risks — not simply rely on parent-company procedures or off-the-shelf systems. And it says Annex 1 firms can operate in sectors that present heightened risks of money laundering and other financial crime.
For regulated firms dealing with any Annex 1 business, the FCA says they should verify registration, carry out independent checks, and understand the risks involved.
Source: @TheFCA
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