Andrew is being stripped of his "prince" title and will leave his Windsor mansion, Royal Lodge.
Buckingham Palace says the King "has today initiated a formal process", and his brother will now be known as Andrew Mountbatten Windsor.
As well as the title, the Palace says "formal notice has now been served to surrender the lease" on Royal Lodge – Andrew will move to the royal estate in Sandringham, Norfolk.
"These censures are deemed necessary, notwithstanding the fact that he continues to deny the allegations against him," the Palace says.
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