®
Anti-money laundering, usually shortened to AML, is the framework of laws, regulations and checks designed to stop the financial system being used to launder the proceeds of crime. In the UK it requires lenders and other regulated businesses to verify who they are dealing with, understand the purpose of a transaction, and report activity they suspect is linked to crime.
- Main UK rules
- The Money Laundering Regulations 2017 (MLR 2017) and the Proceeds of Crime Act 2002 (POCA).
- Core obligations
- Verify identity (KYC), screen for sanctions and politically exposed persons, and report suspicion.
- Who it applies to
- Lenders, banks, and many other businesses handling money or credit.
Know your customer
A central part of AML is "know your customer" (KYC): identifying the business you are lending to, verifying it is genuine, and identifying the people who own or control it — including any ultimate beneficial owner. For a business borrower this means confirming the company or LLP exists, who its directors are, and who ultimately benefits from it.
Screening and reporting
AML also requires screening borrowers against sanctions lists and checking whether anyone involved is a politically exposed person, who carries a higher risk and warrants closer scrutiny. Where a lender suspects money laundering, it must file a Suspicious Activity Report under POCA. These obligations apply regardless of whether the lending itself is inside or outside the consumer-credit regime.
AML and Credit Corp
Credit Corp lends to UK limited companies and LLPs and applies anti-money-laundering checks as part of every application, in line with the Money Laundering Regulations 2017 and POCA 2002. These obligations apply even though business lending of this kind sits outside the consumer-credit regime. Credit Corp is an independent UK lender (Company No. 17338274, ICO ZC189608).
See also
- KYC — knowing and verifying your customer.
- Ultimate beneficial owner — who really owns the borrower.
- Politically exposed person — a higher-risk individual.
- Due diligence — the wider set of checks.
Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.