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UK Names FCA as Single Supervisor for AML Oversight of Professional Services

Implementation depends on enabling legislation plus a formal transition plan.

Overview

  • HM Treasury selected the FCA to become the Single Professional Services Supervisor for anti-money laundering and counter-terrorism financing across legal, accountancy, and trust and company service providers.
  • Lawyers within the Money Laundering Regulations will be dual‑regulated, with the FCA overseeing AML activities and existing legal regulators handling all other matters.
  • The Treasury will consult next month on the new supervisor’s powers, and the handover date hinges on parliamentary time, agreed funding arrangements, and a detailed transition plan.
  • The FCA says a centralised model will enable consistent, risk‑based supervision of approximately 60,000 firms and equip it to take stronger enforcement action.
  • Legal and accountancy bodies, including the Law Society and CIMA, warn about costs, duplication and sector expertise, and current supervisors will continue their roles until the transition is complete.