Glossary
AML
Anti-Money Laundering — the regulatory framework that governs payment providers.
AML (Anti-Money Laundering) refers to the regulatory framework that requires payment providers to identify, monitor and report suspicious activity. UK firms operating in this space are supervised by either the FCA or HMRC depending on the activities they undertake.
In practice
How this works for a UK business
AML obligations in the UK derive principally from the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, alongside the Proceeds of Crime Act. These require regulated firms to carry out customer due diligence (KYC), ongoing transaction monitoring, sanctions screening, and reporting of suspicious activity to the National Crime Agency where appropriate.
AML supervision in the UK payments sector is split: some firms are directly authorised and supervised by the FCA, while others — including many money service businesses — are registered with and supervised by HMRC. TIMEFX LTD is registered with HMRC (registration number XDML00000164897); payments themselves are executed under the regulatory framework for UK payment services by an FCA-authorised institution.
For a customer, AML obligations are experienced mainly as sanctions screening on beneficiary details and, on higher-value or higher-risk payments, requests for supporting documentation such as invoices, contracts or a stated purpose of payment. These checks are a standing regulatory requirement applied consistently, not an indication of suspicion about any particular customer or transaction.
Worked example
Pitfalls
Common mistakes
- Assuming a request for a supporting invoice or purpose-of-payment code signals a problem, when it is typically routine documentation required for a category of payment.
- Confusing FCA authorisation with HMRC AML registration — they are different regimes covering different categories of regulated activity, and firms should be clear about which applies to them.
- Not keeping purpose-of-payment documentation on file internally, which can slow down a provider's request for evidence on a specific transaction.
- Treating AML checks as a one-time onboarding step rather than an ongoing part of every payment relationship.
FAQs
Frequently asked questions
See also
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