The United Kingdom Government has today (21 October 2025) published the outcome of its consultation into reform of the Anti-Money Laundering supervision framework in the UK.
Currently, the AML and counter-terrorism financing 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.
HM Treasury’s 2022 Review of the UK’s AML/CTF regulatory and supervisory regime concluded that while there had been iterative improvement to the regime, continued weaknesses in supervision may need to be addressed through structural reform. Following this, in summer 2023 HM Treasury ran a consultation on reform of the UK’s AML/CTF supervision regime. The consultation asked respondents to assess four models for reform against consultation objectives.
Following its analysis of this evidence, the Government has decided to pursue model 3: the creation of a Single Professional Services Supervisor (SPSS). The Financial Conduct Authority (FCA) will carry out the new supervisory functions as part of its remit and will be tasked with working with the professional services sector, other regulators, and law enforcement agencies to improve the UK’s defences against money laundering.
It is proposed that the FCA will now supervise firms that carry out activities within scope of the MLRs 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 Professional Body Supervisor, and all ASPs and TCSPs supervised by HMRC will be supervised by the FCA.
The 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. A separate consultation on the powers that the supervisor should have will be published in early November.
The Association of International Accountants (AIA) is disappointed by the outcome of this consultation outlining the UK government’s intention to create a SPSS for AML.
We continue to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight. We are concerned that this shift risks significantly weakening the UK’s efforts to tackle economic crime.
Professional bodies play a critical role in maintaining high standards, ensuring accountability, and fostering a culture of compliance within the accountancy sector. Their deep understanding of the profession and established mechanisms for supervision are essential components of robust and effective regulation. Transferring supervision to a SPSS risks losing improvements made by professional body supervisors working in partnership with the Office for Professional Body Supervision (OPBAS).
Philip Turnbull, AIA Chief Executive, said “AIA is concerned by the outcome of this consultation outlining the UK government’s intention to create a Single Professional Services Supervisor for AML. We continue to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight.”
AIA strongly supports measures to combat money laundering and terrorist financing and recognises the significant role that accountants play as gatekeepers to financial integrity. AIA remains committed to engaging constructively with stakeholders to support proportionate and effective reforms. However, we urge the government to reconsider this decision and to recognise the value that professional body supervision brings to the fight against economic crime.
“AIA is concerned by the outcome of this consultation outlining the UK government’s intention to create a Single Professional Services Supervisor for AML. We continue to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight.”
Philip Turnbull, Chief Executive, AIA
