{"id":29917,"date":"2025-10-27T08:07:44","date_gmt":"2025-10-27T07:07:44","guid":{"rendered":"https:\/\/figsflow.com\/uk\/?p=29917"},"modified":"2025-12-16T11:56:07","modified_gmt":"2025-12-16T10:56:07","slug":"fca-takes-over-aml-supervision-what-this-means-for-your-accounting-practice","status":"publish","type":"post","link":"https:\/\/figsflow.com\/uk\/fca-takes-over-aml-supervision-what-this-means-for-your-accounting-practice\/","title":{"rendered":"FCA Takes Over AML Supervision: What This Means for Your Accounting Practice\u00a0"},"content":{"rendered":"\t\t
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Your professional body is about to lose its AML supervision role, and what’s replacing it has the profession deeply concerned.<\/span>\u00a0<\/span><\/p>

The Financial Conduct Authority (FCA)<\/a> will become the sole anti-money laundering supervisor for all UK accounting firms, ending the current system where professional bodies like ICAEW, ACCA and CIOT handle AML oversight for their members.<\/span> This shift in AML Supervision has raised major concerns across the profession.<\/span><\/p>

The reaction from the profession is uniformly negative. Professional bodies warn of higher costs, more bureaucracy and supervision by regulators who don’t understand accounting practice. Practitioners who’ve seen how the FCA operates in other sectors aren’t optimistic either.<\/span>\u00a0<\/span><\/p>

This affects every accounting practice in the UK. And while implementation is still months or years away, the time to understand what’s coming is now.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Key Points for Busy Readers<\/span>\u00a0<\/span><\/h2>

The FCA will replace 22 professional body supervisors as the single AML authority for approximately 60,000 UK accounting, legal and trust service firms. This centralisation of AML supervision represents the most significant regulatory change in decades. No implementation date has been set. Professional bodies unanimously oppose the move, warning of increased costs and loss of sector expertise.<\/span>\u00a0<\/span><\/p>

Practitioners should expect more prescriptive guidance, higher supervision fees and stricter enforcement. Firms need to strengthen AML documentation now, as the FCA’s approach will be more formal and less sympathetic to the realities of small practices.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What Are the Changes with AML supervision & Why Are They Happening? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Currently, <\/span>Anti-Money Laundering (AML)<\/span><\/a> supervision in the UK is split between three public sector bodies and 22 professional body supervisors who ensure firms comply with the prevalent money laundering regulations.<\/span>\u00a0<\/span><\/p>

For accountants, this typically means supervision by your professional body like ICAEW, ACCA, CIOT, ATT or others. The system isn’t perfect, but oversight comes from organisations that understand accounting practice.<\/span>\u00a0<\/span><\/p>

That ends when the FCA takes over as the single body responsible for AML supervision.<\/span><\/p>

Following a 2023 consultation proposing four different models, the government has chosen to consolidate everything under the FCA. This makes the regulator responsible for approximately 60,000 firms across accounting, legal services, and trust and company service providers.<\/span>\u00a0<\/span><\/p>

The stated aim is improving UK defences against money laundering through better coordination with law enforcement.<\/span>\u00a0<\/span><\/p>

The problem? This wasn’t what the profession wanted. Not a single major professional body supported this option. They preferred strengthened supervision by professional bodies overseen by OPBAS (the Office for Professional Body Anti-Money Laundering Supervision).<\/span>\u00a0<\/span><\/p>

The government ignored them.<\/span>\u00a0<\/span><\/p>

Implementation timing remains unclear. The change requires new legislation, funding confirmation and a detailed transition plan. A consultation on the FCA’s specific powers will be published in early November 2025, but no go-live date has been announced.<\/span>\u00a0<\/span><\/p>

What we do know is that when it happens, every accounting firm will move from professional body supervision to FCA oversight. And based on the FCA’s track record in other sectors, that means more rules, higher costs and stricter enforcement.<\/span>\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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What Counts as the FCA's New Remit? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The FCA will become the “single professional services supervisor<\/a>” responsible for ensuring firms meet their <\/span>money laundering regulations obligations<\/span><\/a>. This marks the beginning of direct FCA-led AML supervision for accountants.<\/span>\u00a0<\/span><\/p>

This includes:<\/span>\u00a0<\/span><\/p>