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“fca-money-mule-activity-aml-controls”
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The FCA says firms closed 238,396 suspected mule accounts in 2025, but criminals continue moving illicit funds through multiple accounts.
The UK Financial Conduct Authority (FCA) says financial firms closed 238,396 suspected money mule accounts in 2025, as criminals continued using multiple bank accounts to move and cash out illicit funds. The figure increased from 184,935 in 2023 and 233,269 in 2024.
The FCA published its findings on September 23, 2026, following a survey of financial services firms and analysis of how fraud proceeds move through the financial system.
FCA Reports More Than 238,000 Suspected Mule Accounts Closed
Criminals Continue Moving Funds Through Multiple Accounts
The FCA found evidence that fraudulent funds were moved through multiple accounts before being cashed out. In the cases examined, cashing out commonly occurred between the second and fifth account, making the payments increasingly difficult to detect and trace.
Some accounts were also repeatedly used for money mule activity and fraud before being closed. The FCA said this indicates the presence of established criminal infrastructure rather than only isolated incidents.
The regulator also found differences across financial institutions. Retail banks accounted for most transactions passing through mule accounts, while some other firms experienced lower volumes but higher-value transactions.
What the FCA Found About Customer Risk
The FCA survey found that account closures were highest among customers aged 26 to 39, with 91,073 closures in 2025. Customers aged 25 and under also represented a significant proportion, with 85,425 closures.
The FCA noted that changes in closure numbers can reflect customer growth and improvements in firms’ ability to identify suspected mule activity, rather than necessarily indicating that mule activity represents a larger share of firms’ business.
The FCA also reported that card payments were the most common cash-out method identified in its analysis. These included numerous low-value transactions as well as higher-value payments to local businesses and retailers, which can resemble legitimate consumer spending.
Why This Matters for AML and KYC Teams
The FCA’s findings are relevant to both AML and KYC professionals because money mule activity can continue after an account has passed initial onboarding checks.
For KYC teams, the findings underline the importance of understanding customer risk and identifying unusual activity after onboarding. Customer identification alone does not show how an account is subsequently being used.
For AML and transaction-monitoring teams, the FCA’s findings highlight the importance of identifying suspicious activity early. The movement of funds through several accounts can make later-stage detection and tracing more difficult.
The FCA says it is working with industry and law enforcement on an action plan that includes improving the sharing of intelligence about suspected money mule activity. The FCA also established a public-private working group in 2025 involving 22 regulated firms and examined 140 cases covering seven types of fraud.
Key Takeaways
- 238,396 suspected mule accounts were closed by firms in 2025.
- Fraudulent funds were often moved through multiple accounts before being cashed out.
- Some accounts were repeatedly used for mule activity and fraud.
- Card payments were the most common cash-out method identified in the FCA’s analysis.
- The FCA is working with firms and law enforcement to improve intelligence sharing and address money mule networks.
Source: UK Financial Conduct Authority — Firms crack down on money mules but need to do more
CATEGORY
AML News + Enforcement News
“aml, fca, money mules, transaction monitoring, financial crime, united kingdom, fraud, enforcement action”
