A Single UK AML Regulator? What the FCA’s New Role Means for Professional Services Firms
- Corinna Venturi
- Oct 27
- 3 min read
Background
In October 2025, HM Treasury confirmed a major reform to the UK’s anti-money-laundering (AML) and counter-terrorist-financing (CTF) supervisory regime. The Government has chosen the “single professional services supervisor” model, designating the Financial Conduct Authority (FCA) as the new regulator for AML/CTF oversight of:
Legal service providers
Accountancy service providers (ASPs)
Trust or company service providers (TCSPs)
This represents a decisive shift from the long-criticised multi-supervisor system, under which more than 20 professional bodies currently act as AML supervisors. The reform is intended to improve consistency, reduce duplication, and strengthen the UK’s overall response to economic crime.
Why the Change?
The 2023 consultation on Reforming the UK’s AML/CTF Supervisory Regime identified persistent weaknesses in the fragmented model; including uneven supervisory standards, poor information-sharing, and limited enforcement outcomes.
The new model will align professional services sectors under one experienced regulator with established capacity for risk-based supervision, enforcement, and data analytics.
According to the Treasury statement:
“A key element of simplification is consolidation of similar supervisory responsibilities where these are currently spread across multiple bodies.”
The FCA added in its own announcement that it will work with HM Treasury, OPBAS, and existing Professional Body Supervisors to develop a detailed transition plan and ensure continuity during implementation.
What Will Change — and When?
Implementation is subject to:
The passage of enabling legislation;
Funding arrangements for the new supervisory structure; and
Development of a detailed transition and delivery plan.
The FCA has stated that the start date will depend on parliamentary time, meaning that full supervision is unlikely to commence before 2026. Until then, existing supervisors will remain responsible for AML oversight in their respective sectors.
What This Means for Firms
For law firms, accountancy practices, and TCSPs, this is a major regulatory transformation. The FCA’s supervisory model will bring:
More structured data collection – firms will likely face mandatory reporting and standardised returns similar to FCA-regulated entities.
Higher expectations for governance and risk assessment – including clear accountability at senior management level.
Enhanced thematic reviews and enforcement powers – the FCA’s track record suggests a far more proactive stance than many PBSs.
Closer integration with financial-sector supervision – creating greater alignment between financial and professional services compliance standards.
While this reform initially covers only professional services sectors, many observers view it as a testing ground for eventual consolidation of the entire UK AML supervisory landscape.
What It Means for the Wider Market
For financial services and payment firms already supervised by the FCA or HMRC, the short-term impact is limited. However, the change underscores the Government’s commitment to rationalising and strengthening the UK’s AML regime, a direction that could eventually bring all relevant persons under a single supervisory framework.
Our View
This reform is arguably the most significant structural change to the UK AML regime since the introduction of the 2017 Regulations. It reflects growing recognition that effectiveness depends not only on rules, but on consistent and capable supervision.
And, as Steve Goodrich at Transparency International UK noted:
“These reforms are long overdue and present a welcome step towards fixing the UK’s broken system for tackling illicit finance.”
Coventium welcomes the move toward greater clarity and accountability but recognises that many professional services firms will need time, and expert guidance, to adjust to FCA-level expectations.
We will continue to monitor the transition process closely and publish u
pdates as legislative and implementation details emerge.
Need help preparing for FCA-level AML supervision? Coventium supports regulated firms across the UK and EU with assurance reviews, risk assessments, and tailored compliance frameworks.
Sources:
Transparency International UK: End the Enablers – Reforming AML Supervision, Oct 2025
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