The future of AML supervision – What the FCA’s new role means for UK firms

In a decisive move to strengthen the UK’s defences against financial crime, the government has announced a major reform to the anti-money laundering (AML) and counter-terrorism financing (CTF) supervisory regime. The Financial Conduct Authority (FCA) will become the single supervisor for professional services firms in the legal and accountancy sectors, replacing the current system of multiple Professional Body Supervisors (PBSs). 

This change follows years of scrutiny and concern over inconsistent supervision standards across the 25 PBSs overseen by the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), which is housed within the FCA. 

Why the change? 

The FCA’s latest report reveals that while most PBSs comply with the Money Laundering Regulations, their supervisory effectiveness varies widely. Key issues include: 

• Weak enforcement: Fewer fines and limited use of supervisory powers. 
• Inconsistent intelligence sharing: Some PBSs improved, but others lagged, hampering efforts to disrupt illicit finance. 
• Lack of consistent standards: No PBS was found to be fully effective across all areas. [fca.org.uk] 

Andrea Bowe, Director at the FCA, stated:  “We are still not seeing the consistent, effective improvement we need. Through OPBAS, we have intervened to tackle failings where we have found them.” 

For firms in the legal and accountancy sectors, this reform will bring: 

• A single, centralised supervisor: The FCA will oversee AML compliance, aiming for greater consistency and accountability. 
• Stronger enforcement: Expect more rigorous oversight and clearer expectations. 
• Improved intelligence sharing: Enhanced collaboration with law enforcement and regulators to combat financial crime. 

While the transition may introduce new compliance demands, it also offers an opportunity for firms to align with a more robust and transparent supervisory framework. 

Veriphy’s role in supporting you 

At Veriphy, we’re committed to helping our clients stay ahead of regulatory changes. As the FCA prepares to take on its new role, we will: 

• Continue to keep our tools and resources at the cutting edge, to help you meet compliance standards. 
• Provide expert guidance to help firms navigate the transition. 
• Monitor developments and share timely insights through our newsletter and blog. 

This reform is a pivotal moment for AML supervision in the UK. It’s designed to protect the integrity of the financial system and ensure that professional services firms play their part in preventing economic crime. 

As the UK enters a new era of AML supervision, Veriphy is here to help you stay compliant, confident, and informed. Need support strengthening your AML compliance processes? Our experts are on hand to help—just get in touch or request a demo to learn more about our solutions! You can also sign up for one of our training courses to develop your team’s knowledge and understanding of compliance.