The UK government has announced plans to centralise anti-money laundering and counter-terrorism financing (AML/CTF) oversight for legal, accountancy, and trust and company service providers (TCSPs) under the Financial Conduct Authority (FCA).
This restructuring follows the 2023 public consultation on reforming the country’s AML supervisory framework. Under the new approach, the Solicitors Regulation Authority (SRA)—currently the largest of the 22 professional bodies responsible for AML supervision—will see its role significantly reduced.
Other supervisory bodies and HM Revenue & Customs (HMRC) will also eventually cede their AML oversight functions within the professional services sector to the FCA.
The consultation process was prompted by a Financial Action Task Force (FATF) review, which highlighted inconsistencies and deficiencies in the UK’s system—particularly in the supervision of professional service firms. FATF’s findings revealed that many UK supervisors struggled to apply a risk-based approach effectively, leaving vulnerabilities in the country’s AML defences.
According to the government, the current landscape—with 23 separate supervisory authorities—has become “complex and fragmented,” hindering coordination and enforcement. Consolidation under a single public regulator is intended to streamline oversight, promote consistency, and enhance cooperation with law enforcement agencies.
The FCA already regulates financial institutions for compliance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. Expanding its remit to cover professional services will align AML supervision across more sectors of the economy.
The Office for Professional Body Anti-Money Laundering Supervision (OPBAS), which operates within the FCA, had been considered for an expanded role. However, HM Treasury ultimately opted for a Single Professional Services Supervisor (SPSS) model instead of extending OPBAS’s authority.
Once implemented, the FCA will oversee all legal, accountancy, and TCSP entities that fall under the scope of the 2017 Regulations. This includes firms currently monitored by professional body supervisors as well as those under HMRC’s jurisdiction.
The transition will depend on the enactment of enabling legislation, funding arrangements, and the development of a detailed implementation plan. HM Treasury is expected to issue a follow-up consultation in this month of November to define the FCA’s new supervisory powers and operational framework.
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