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AntiMoney Laundering/Counter Terrorist-Financing (AML/CTF) Supervision Reform: Duties, Powers, and Accountability Consultation Response

The Treasury has published its response to its consultation on system-wide reform of anti-money laundering and counter-terrorist financing (AML/CTF) supervision, which would move supervision from Professional Body Supervisors (PBSs), including the Solicitors Regulation Authority (SRA), to the Financial Conduct Authority (FCA). There is currently no implementation date, and the reforms will require both primary and secondary legislation.

The consultation follows the Government’s policy intention that the FCA should become the AML/CTF supervisor for legal and accountancy service providers, as well as trust and company service providers. The response sets out the Government’s position on the proposed supervisory powers and the framework intended to support the FCA in operating as a single, more consistent AML/CTF supervisor across the sector.

The consultation also highlights concerns raised by legal professionals regarding the potential for unintended consequences, particularly duplication of regulatory requirements. In response, the government notes that ‘HM Treasury is conscious of the risk of duplication of requirements on firms as a result of supervision reform. We will ensure that the FCA and existing PBSs have the means to share information and cooperate effectively to minimise burdens.’

Posted on 06/23/2026 by Ortolan

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