International money transfer laws and regulations in the UK

If you’re sending money abroad for the first time, especially a large sum, then you’ll need to know about the UK’s rules and regulations for international transfers.

This can help you know what to expect, as well as what details you’ll need to provide and any limits which may apply.

In this guide, we’ll run through everything you need to know about international money transfer regulations in the UK. This includes an overview of laws, limits, regulators and consumer protections.

We’ll also show you an easy, secure and transparent way to send money internationally from the money services provider Wise - the Wise account. It’s not a bank account but offers some similar features, and your money is safeguarded.

Over 12.8 million people worldwide use Wise to send, spend and convert money in 40+ currencies – for low, transparent fees* and no-markup exchange rates close to what you can see on Google. Plus, you’ll get dedicated support and volume discounts when sending large amounts.

Learn more about the Wise account ➡️

Who regulates international money transfers in the UK?

The body responsible for regulating international money transfers in the UK is the Financial Conduct Authority (FCA).

The FCA is the UK’s financial services regulator, so it sets and enforces rules for businesses and organisations across the whole of the financial market. This includes money transfers going in and out of the country.

It also takes measures to protect consumers, prevent fraud and investigate misconduct.

What laws and regulations apply to sending and receiving money from abroad in the UK?

There are two main regulations which cover sending and receiving international payments in the UK. These are the anti-money laundering (AML) regulations, and the Funds Transfer Regulation (FTR).

The anti-money laundering (AML) regulations are designed to detect and prevent criminals from disguising illegally obtained funds as legitimate income. The rules are comprehensive, and include monitoring and reporting potentially suspicious activity.

Under the laws, UK financial institutions are required to use robust systems to reduce the risk of their systems being used for money laundering activities. This includes gathering information under Know Your Customer (KYC) rules and flagging suspicious activity to the FCA or HMRC.

What is the Funds Transfer Regulation in the UK?

The second piece of legislation affecting international transfers into and out of the UK is called the Funds Transfer Regulation (FTR). It’s also known as the wire transfer regulations in the UK.

This was derived from the EU’s wire transfer regulations, but assimilated into UK law after the UK left the European Union.

The FTR sets out the rules for senders and recipients, banks and payment service providers for electronic funds transfers.

One of the main things it does is ensure that sender and recipient information accompanies each transfer as it makes its way along the payment chain. This provides greater transparency, as well as helping to detect and prevent money laundering and terrorist financing.¹

The regulation affects any transfer which is sent or received by a bank or other payment service provider based in the UK.

International money transfer limits in the UK

There aren’t any official or legal limits for how much money you can send abroad from the UK, or receive from abroad.

However, the transfer provider you use may set a limit on how much you can send per day, month or year. For example, banks tend to have international transfer limits of around £25,000 to £50,000. It depends on the bank, and also the account - for example, HSBC customers with a Premier account can send up to £10 million.²

You may also be able to send more with a specialist online money transfer service. For example, with Wise you can send up to £1 million, or up to £20 million if sending from a local currency balance in your account. Read more about Wise transfer limits here.

Another thing to be aware of is that official bodies like the Financial Conduct Authority (FCA), and HM Revenue & Customs (HMRC) may monitor international money transfers to check for illegal activity such as fraud and money laundering.

So if you’re sending a large amount, you may be asked to provide additional details or to provide evidence for the source of the funds. You’ll just need to follow the service provider’s processes, and it shouldn’t involve too many additional steps or extra time.

Do banks notify HMRC of large transfers from or to the UK?

Banks and money transfer providers are legally obliged to report suspicious transactions or activity that could be linked to money laundering or other serious financial crime. They’d need to report these transactions to HMRC and/or the FCA.

So they don’t automatically tell regulators or HMRC every time you make a large transfer, but they may report any transactions that are flagged up as potentially being fraudulent.

If the FCA or HMRC have any concerns about transfers they're informed of - about money laundering or tax avoidance for example - they can investigate further. This may lead to civil or criminal action if the transfer is found to break the law. Even if no wrongdoing is found, this investigation can potentially delay the transfer.

Another key legal obligation for international transfers - especially for sending large amounts - is that banks and providers must collect certain details about both the sender and the recipient.

This may include:

• Personal details for both sender and recipient - including full name, address, date of birth, occupation, nationality and country of residence
• Information on the purpose of the payment
• Information or evidence of the source of the funds (where the money came from originally)
• The relationship between the sender and recipient (if any)

This is in addition to the bank details needed to actually make the transfer.

Taxes on foreign money transfers in the UK

As well as understanding the regulations on international money transfers in the UK, there’s another crucial thing to get to grips with - whether you need to pay tax on foreign money transfers in the UK.

The good news is that generally speaking, you shouldn’t have to pay tax on international transfers. This is almost always the case when sending personal payments outside the UK.

If you’re receiving a large transfer from overseas, you may need to pay income tax - it all depends on the purpose of the payment. If you’re receiving what is classed in the UK as taxable income, you may need to declare it on your annual Self Assessment tax return. This includes things like:

• Earnings from employment or self-employment
• Returns from investments
• Funds from selling an overseas property
• Income from an overseas rental property.

Payments made or received for business purposes are likely to be treated differently under UK tax laws. This can be particularly complicated if you’re sending to or receiving from a country which has specific tax laws that might affect you.

For both personal and business transfers outside the UK, it’s strongly recommended to get professional tax advice to make sure you understand your obligations (if any).

What is the Common Reporting Standard (CRA)?

If you’re reading up on the laws on sending money abroad from the UK, you may come across something known as the Common Reporting Standard (CRA).

This is a global standard for the automatic exchange of financial account information between governments. In the US, there are separate yet similar rules under the Foreign Account Tax Compliance Act (FATCA).

Under the CRA, all financial institutions must gather certain information on customers and their accounts, and report it to the relevant local tax authorities.⁵

The purpose is to improve transparency, prevent tax evasion and protect the integrity of global financial systems.

What are my rights and protections as a consumer sending money internationally?

The FCA regulates banks and companies providing international transfer services in the UK. They need to meet certain standards with regards to protecting your account, data, funds and transfers. If they fail to meet these standards or something goes wrong, you have the right to complain and have it set right.

If you’ve experienced a problem with an international transfer, the first thing to do is complain directly to the bank or payment service provider.

If something goes wrong and the bank or company doesn’t set it right, you can complain to the Financial Ombudsman Service. You must complain directly to the bank or company first and give them 8 weeks to provide a resolution or a response.

If they don’t resolve the issue or you’re not happy with the response, you can complain to the UK’s Financial Ombudsman Service. They will investigate and hopefully help you resolve the issue.

Wise – A low-cost alternative to bank transfers

Looking for a secure, convenient and low-cost way to send money from the UK? Take a look at the Wise account from the money services provider Wise. It's not a bank account but offers some similar features and your money is safeguarded.

With Wise, you can send money worldwide to 140+ countries for low, transparent fees* and you’re guaranteed the mid-market exchange rate with no markup.

✅ Sign up with Wise today

**Capital at risk. In the UK, Interest and Stocks are provided by Wise Assets — this is the trading name of Wise Assets UK Ltd, a subsidiary of Wise. Wise Assets UK Ltd is authorised as an investment firm and regulated by the Financial Conduct Authority (FCA). Our FCA number is 839689. We do not give investment advice, and you may be subject to pay tax. If you're not sure, seek qualified advice. You can find more information about the funds on our website.

Sources used:

Sources last checked on date: 23-Jun-2025