Category: Compliance & AML · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed June 2026
The UK industry-led body that publishes the principal industry guidance on anti-money laundering and counter-terrorist financing controls — guidance to which the FCA, HM Treasury and the courts give substantial weight.
The Joint Money Laundering Steering Group (JMLSG) is a private-sector body composed of the leading UK financial-services trade associations. It publishes the JMLSG Guidance — a multi-part guidance document that explains how regulated firms in the financial sector should comply with UK AML / CFT requirements. The Guidance is approved by HM Treasury.
JMLSG Guidance is approved by HM Treasury under section 330(8)(a) of the Proceeds of Crime Act 2002 (and the equivalent provision in section 21A of the Terrorism Act 2000). Approved guidance must be taken into account when courts consider whether a firm has committed a section 330 / 21A failure-to-disclose offence. The FCA expressly endorses the JMLSG Guidance in supervisory dialogue and SYSC 6.3.
The JMLSG Guidance is in three parts: Part I covers the general framework (risk-based approach, CDD, EDD, training, MLRO, SARs); Part II covers sector-specific guidance for individual product / activity types (including life insurance, general insurance, motor insurance and pension business); Part III covers prevention guidance for non-FCA-regulated entities. The Guidance is updated regularly to reflect amendments to MLR 2017, FCA guidance, and emerging risk typologies.
For insurance distribution, sectoral guidance for general insurance brokers focuses on risk indicators relevant to the sector (premium funding, unusual cancellation patterns, third-party payments, etc.). The 2025 update is anticipated to address ECCTA 2023 reforms.
An insurance broker designing its CDD process for commercial customers can cross-reference its policies to specific JMLSG paragraphs to evidence the FCA’s expected approach. In FCA supervisory engagement, alignment with JMLSG is treated as material evidence of an adequate framework.
JMLSG Guidance for the UK Financial Sector, Parts I, II, III (current edition, with sectoral updates). Proceeds of Crime Act 2002, section 330(8)(a). Terrorism Act 2000, section 21A. HM Treasury approval of JMLSG Guidance.
By Matt Bartlett, Director, on 2026-06-11.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-11. Apex Insurance Brokers Limited, FCA FRN 724952, Companies House 07014570. Not regulated advice — consult your broker on your specific position.
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