On 21st October 2025 the government announced that the supervision of compliance with anti-money laundering and counter-terrorism financing (AML/CTF) requirements for the professions would be consolidated under one body - the FCA.

Currently the supervisory system is made up of three public sector supervisors - the Financial Conduct Authority (FCA), the Gambling Commission and His Majesty’s Revenue and Customs (HMRC) - and 22 private sector professional body supervisors (PBSs) who supervise the legal and accountancy sectors. These supervisors ensure firms comply with the Money Laundering Regulations (MLRs). They help firms understand their obligations and take enforcement action if the MLRs are breached.

Following a consultation the government has decided to move the supervisory responsibilities from those 22 organisations (including the SRA) together to one supervisory body - the FCA. They will supervise firms that carry out activities within scope of the Money Laundering Regulations as Legal Service Providers (LSPs), Accountancy Service Providers (ASPs), and Trust and Company Service Providers (TCSPs). In practice, this means that all firms currently supervised for AML/CTF matters by a PBS, and all ASPs and TCSPs supervised by HMRC will be supervised by the FCA. WE are not sure if this will include Estate Agents and Letting Agencies (which are mentioned in the government document). This will become clearer over time.

When will this happen? The government has stated:

"implementation of this policy is subject to the passage of enabling legislation, confirmation of funding arrangements, and development of a detailed transition and delivery plan. As such, the date at which the FCA will commence supervision of the professional services sector will be heavily dependent on the availability of parliamentary time. To prepare for this, we will publish a separate consultation on the powers that the supervisor should have in early November."

Typically a consultation will take 3 months. We shall see. Then time has to be found for legislation. A 'detailed transition and delivery plan' will have to be agreed. So, we do not expect this to happen soon. But it will happen. In the meantime, we recommend firms continue to abide by the SRA guidance.

Link to the government announcement: https://hunningsconsultancy.co.uk/wp-content/uploads/2025/10/AML-HM-Treasury-FCA-211025-.pdf

Help from Us with AML Compliance?

• Independent AML Audits
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• SRA Audit or Inspection on AML - we help firms with this. Charged at £200/r. It is best to contact us as soon as you receive notification from the SRA. They will ask you to answer some preliminary questions and submit your policies for review. How you answer them can help or hinder how the audit or inspection goes.