The UK government has proposed appointing the Financial Conduct Authority (FCA) as the single supervisor for anti-money laundering (AML) and counter-terrorist financing (CTF) compliance across the professional services sector.
Reasons For The Change
Currently, AML supervision for law firms, accountancy firms, and other professional advisers is split between multiple professional bodies and regulators. This fragmented approach has been criticised for inconsistent standards, uneven enforcement, and limited information-sharing, particularly for firms operating across multiple sectors.
The proposal would centralise AML supervision under one authority, bringing professional services closer to the financial services regulatory model.
Why the FCA?
The FCA has been identified due to its risk-based, data-driven, and outcomes-focused supervisory approach. Centralised oversight is expected to improve consistency, strengthen enforcement, and provide clearer regulatory expectations across the sector.
Affected Parties
The proposal is particularly relevant for: • Law firms and legal service providers • Accountancy and audit firms • Trust and company service providers • Advisory firms with higher-risk or cross-border clients These organisations should anticipate more frequent and formal supervisory engagement, alongside increased scrutiny of their governance frameworks, internal controls, and senior management accountability.
Conclusion
Appointing the FCA as the single AML supervisor would represent a major shift in the UK regulatory landscape. Professional services firms should begin reviewing their AML governance, risk assessments, and oversight structures in anticipation of a more unified and robust supervisory regime.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. SteelRose Legal Ltd does not advocate or endorse any specific viewpoint.