One of the biggest changes to UK AML supervision in years is underway. Here’s what’s changing, who’s affected, the timeline, and how to prepare.
Quick answer
The UK government has confirmed that the Financial Conduct Authority (FCA) will become the single anti-money laundering (AML) supervisor for professional services — taking over from the SRA, ICAEW, the Law Society and other professional-body supervisors. Announced in October 2025, with the enabling Bill introduced to Parliament in 2026, it’s one of the biggest AML shake-ups in years. It affects law firms, accountancy practices and trust & company service providers. Estate agents remain supervised by HMRC.
If you run a law firm or accountancy practice, the body that supervises your AML compliance is changing. This is a genuine, confirmed reform — not a proposal — and although full implementation will take a few years, the policy position is settled and firms are being advised to start preparing now.[1]
What’s actually changing
The government has decided to adopt a “Single Professional Services Supervisor” model, with the FCA as that single supervisor. This replaces the current fragmented system, in which around two dozen professional-body supervisors — including the Solicitors Regulation Authority (SRA), the Institute of Chartered Accountants in England and Wales (ICAEW), and the Law Society — each oversee their own members.[2] The stated aim is to remove duplication and inconsistency and create a more centralised, data-driven, outcomes-focused regime.[3]
~60,000
businesses expected to move into FCA AML supervision (lawyers, accountants, TCSPs)
74%
of FCA investigations opened in 2024/25 were financial-crime related
4–5%
of UK GDP is the estimated scale of money-laundering risk
Figures are from the cited third-party sources and are indicative — confirm against the primary source before quoting.[4]
Who is affected — and who isn’t
- Affected: legal service providers (law firms), accountancy practices, and trust & company service providers currently supervised by professional bodies.
- Not affected in the same way: estate agency businesses remain supervised by HMRC — this reform is about professional-services supervision, not property agency. (Estate and letting agents should continue with their existing HMRC obligations.)
This is a useful point of clarity: the FCA change does not move estate agents. If you’re an estate or letting agency, your supervisor stays HMRC. If you’re a law or accountancy firm, your AML supervisor is moving to the FCA.
The timeline so far
October 2025Government announces the FCA will become the single professional-services AML supervisor.
November–December 2025HM Treasury consults on the FCA’s duties, powers and accountabilities; publishes its 2024/25 supervision report as a baseline.
May 2026The Financial Services and Markets Bill — including clauses to transfer AML/CTF supervision to the FCA — is introduced to Parliament.
June 2026HM Treasury publishes its consultation response, giving a clearer roadmap for the transfer.
2026 onwardsDetailed transition plan to be published; implementation expected to take several years.
Timeline based on published guidance at the time of writing; this is live legislation and dates may move — verify current status.[5]
What it means for firms in practice
The professional bodies and firms themselves have raised real concerns — including the risk of duplication (being investigated by two supervisors for the same issue during transition), a new fee regime, additional “fit and proper” requirements, and the potential loss of sector-specific expertise.[1] For most firms, though, the practical message is simpler: the fundamentals of good AML compliance don’t change — but the expectation to demonstrate that compliance, consistently and on demand, is only going to rise under a data-driven regulator.
Add expert quote before publishing
“Whoever the supervisor is, the firms that cope best with regulatory change are the ones whose compliance is already systematic and evidenced. If your onboarding produces a clean audit trail as a matter of course, a change of supervisor is an administrative event — not a scramble.”
— Suggested placeholder for a quote from Osman Ismail (founder input, OnBoardNow / DPS Software). Replace with a real, approved quote, or remove.
How to prepare now
- Get your AML process consistent and documented — a data-driven supervisor will expect uniformity, not variation between staff or offices.
- Make compliance demonstrable — ensure every client’s checks, evidence and decisions are recorded and retrievable.
- Tighten your onboarding audit trail — this is exactly what a centralised, outcomes-focused regime will scrutinise.
- Watch for the transition plan — detailed timelines and fee arrangements are still to come; assign someone to track them.
Key takeaway
You can’t control who supervises you, but you can control how defensible your compliance is. Firms with consistent, well-evidenced onboarding will find the transition to FCA supervision far less disruptive than those relying on manual, inconsistent checks.
Make your AML compliance demonstrable — before the supervisor changes
OnBoardNow runs identity, AML/KYC, PEP and sanctions checks inside a consistent onboarding journey, capturing a full audit trail by default — so whoever supervises you, you can evidence compliance on demand.Book a demo →
Frequently asked questions
Is the FCA really becoming the single AML supervisor?
Yes. The government confirmed in October 2025 that the FCA will be the single professional-services AML supervisor, with enabling legislation introduced to Parliament in 2026. Implementation will take several years.
Which firms are affected?
Law firms, accountancy practices and trust & company service providers currently supervised by professional bodies such as the SRA and ICAEW. Estate agents remain supervised by HMRC.
When does it take effect?
The policy is settled but transition is phased over several years. A detailed transition plan is expected to be published following the 2026 legislation — check current status.
Does this change what AML checks I have to do?
The core obligations under the Money Laundering Regulations 2017 remain. What’s changing is who supervises you and how — with a more centralised, data-driven, evidence-focused approach expected.
Are estate agents affected?
Not by this reform. Estate agency businesses remain supervised by HMRC; the FCA change applies to professional-services firms.
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