FCA Reports Surge in Money Mule Account Closures to Combat £100bn Laundering Crisis

Financial firms closed 238,396 suspected money mule accounts in 2025, a significant rise that highlights the escalating battle against organised criminal networks. For fintech professionals, this surge underscores the critical need for early-stage detection, as criminals increasingly exploit retail banking infrastructure to launder an estimated £100 billion annually through the UK.

What was announced

The Financial Conduct Authority (FCA) has released survey data showing a steady climb in the number of suspected money mule accounts being shut down by financial institutions. The 238,396 closures recorded in 2025 represent a notable increase from the 184,935 closures in 2023 and 233,269 in 2024. While the regulator noted that this rise may partly reflect general customer growth and improved identification methods, it also points to the persistent scale of illicit activity within the UK banking system.

The data provides a detailed breakdown of the demographics targeted by these criminal networks. The highest number of closures occurred among customers aged 26 to 39, totaling 91,073 accounts. However, the most rapid growth in mule activity was observed in the 40 to 49 age group, which saw closures jump from 25,760 in 2024 to 37,274 in 2025. Younger customers aged 25 and under also remained a primary target for recruiters, accounting for 85,425 closures.

A key finding in the survey is the sophistication of the "cashing out" process. Criminals typically move fraudulent funds through a chain of multiple accounts, usually exiting the system between the second and fifth account. The FCA noted that by the time money reaches these later stages, it becomes significantly harder for firms to detect and trace. Furthermore, evidence suggests that many accounts were used repeatedly for both muling and broader fraud, indicating that these are not isolated incidents but part of an established criminal infrastructure. The National Crime Agency (NCA) currently estimates that more than £100 billion is laundered through the UK or its corporate structures every year.

"Money muling is a crime and it's not victimless. It makes it harder to recover stolen cash and helps criminals move and hide the proceeds of serious offending. People should be wary of contact out of the blue, including via online channels, asking them to funnel money through their account as they could face prosecution."

Steve Smart, executive director of enforcement and market oversight at the FCA.

The companies involved

The Financial Conduct Authority (FCA) operates as the conduct regulator for nearly 50,000 financial services firms and financial markets in the United Kingdom. Its role is central to maintaining the integrity of the UK’s financial system, with a specific mandate to protect consumers and promote competition. The regulator has recently intensified its focus on economic crime, working alongside other government bodies to secure the financial perimeter and improve intelligence sharing between the private sector and law enforcement.

The National Crime Agency (NCA) serves as the UK's lead agency against organised crime, human trafficking, and economic crime that crosses regional and international borders. The NCA provides the high-level estimates of money laundering scales that inform national policy. Together with the Home Office, HM Treasury, and HMRC, these organisations form the backbone of the UK’s multi-agency response to financial illicit activity. Their combined efforts are currently focused on nine system priorities designed to disrupt the established criminal infrastructure that facilitates the movement of dirty money through legitimate banking channels.

What FF News has reported before

FF News has closely followed the FCA’s expanding role in both market development and enforcement. The regulator recently issued a FCA Unveils Strategic Roadmap to Boost SME Access to Finance via Open Finance and Regulatory Reform, which detailed plans to leverage data for better business outcomes. On the enforcement side, the agency has been active in high-stakes interventions, such as when the FCA Targets Illegal London Crypto Traders in Major Multi-Agency Crackdown. These reports highlight a dual-track approach of fostering innovation while aggressively policing the boundaries of the regulated financial sector.

What this means

The sheer volume of account closures—nearly a quarter of a million in a single year—indicates that the UK banking sector is under immense pressure to act as the first line of defence against money laundering. While the increase in closures suggests improved detection capabilities, the revelation that criminals successfully hop through up to five accounts before cashing out exposes a critical latency in the current system. This puts the industry under pressure to move beyond reactive closures toward real-time, cross-institutional intelligence sharing. The concentration of activity in the 26-39 age bracket also raises questions about whether current anti-fraud education is reaching the right demographics effectively, or if economic pressures are making older cohorts more susceptible to recruitment.