CurveBlock
The UK’s anti‑money‑laundering (AML) and counter‑terrorist financing framework requires regulated firms to perform customer due diligence (CDD), identity verification and ongoing monitoring of transactions. Platforms offering fractional interests that fall within regulated activity — for example, those facilitating financial promotions, arranging investments or providing custody — need to ensure they are clear about their regulatory status and the specific AML obligations that apply to them. Key elements include verifying customer identity, assessing risk (including politically exposed persons), monitoring for suspicious activity, and maintaining records.
Sanctions and screening obligations are now central to compliance. Firms must screen customers and counterparties against consolidated sanctions lists and have systems to prevent sanctioned individuals from investing or receiving proceeds. Ongoing transaction monitoring and periodic reviews are necessary to pick up changes in risk profiles. Enhanced due diligence is expected where higher risk is detected, including complex ownership structures sometimes encountered in property SPVs or community energy co‑ops.
For platforms, meeting these duties requires investment in KYC technology, clear processes for manual review, and documented decision logs. Outsourcing parts of the process to regulated third parties is common, but responsibility for compliance remains with the regulated firm. Transparency in onboarding and clear explanations for customers about why information is required help reduce friction and support regulatory readiness.
For retail investors, these rules explain why platforms ask for identity documents, source‑of‑fund information and regular updates. Robust AML and sanctions controls are not a barrier for legitimate savers; rather, they are structural protections that reduce fraud and preserve market integrity as fractional real‑asset markets expand.