The UK Financial Conduct Authority (FCA) has published details of planned reforms that would expand its responsibility for anti-money laundering and counter-terrorist financing supervision.
The update, published September 22, 2026, concerns legal service providers, accountancy service providers, and trust and company service providers that are currently supervised by professional body supervisors or HM Revenue and Customs.
The proposed changes are intended to simplify the UK’s AML/CTF supervisory structure and strengthen consistency across sectors.
What Is Changing
The UK Government plans to reform the AML and CTF supervision regime.
Under the proposed framework, the FCA would take responsibility for AML and CTF supervision of legal service providers, accountancy service providers, and trust and company service providers.
These businesses are currently supervised by professional body supervisors or HMRC.
The FCA said the reforms aim to simplify the supervisory landscape, improve consistency and strengthen the UK’s approach to tackling financial crime.
However, the changes are not yet in force.
Legislation Is Still Required
The FCA emphasized that nothing changes immediately for affected businesses.
The reform depends on the UK Government passing new legislation. The legal changes are expected to be made through the Financial Services Bill and secondary legislation, including changes to the Money Laundering Regulations.
Businesses affected by the proposed reforms should therefore continue following their existing AML processes and engage with their current supervisors.
The FCA does not expect to begin taking on the expanded supervisory role until autumn 2028.
The transition is expected to take place in phases and is expected to be completed around 2030.
Businesses Affected
The FCA estimates that approximately 60,000 businesses and sole practitioners could be affected.
This includes approximately 34,000 accountancy businesses supervised by professional body supervisors, 7,500 law businesses supervised by professional body supervisors, and around 18,000 accountancy businesses and trust and company service providers supervised by HMRC.
The FCA noted that these figures are estimates and could change as the transition plan develops.
Risk-Based Supervision
The FCA said its expanded supervisory approach will be risk based, targeted and proportionate.
The regulator already supervises firms carrying out certain financial activities under the Money Laundering Regulations and oversees professional body supervisors through the Office for Professional Body Anti-Money Laundering Supervision.
During the transition, professional body supervisors will continue their existing functions for non-AML/CTF conduct matters.
The FCA will work with them on AML/CTF matters affecting their members.
The FCA also said legal professional privilege protections will remain in place.
Why This Matters for AML and KYC Professionals
The proposed reform could significantly affect AML governance and supervisory expectations across the UK professional services sector.
Compliance teams supporting law firms, accounting businesses and trust and company service providers should monitor the legislative process rather than treating the planned FCA role as an immediate regulatory change.
Organizations should also avoid prematurely replacing existing supervisory arrangements before the legal framework and transition process are finalized.
The long transition period provides firms with an opportunity to review AML risk assessments, governance structures, policies, procedures, training and monitoring arrangements.
Key Takeaways
- The FCA published its AML supervision reform update on September 22, 2026.
- The planned reform would move AML/CTF supervision of certain professional sectors to the FCA.
- Legal, accounting, and trust and company service providers are expected to be affected.
- Nothing changes immediately because legislation is still required.
- FCA supervision is expected to begin in phases from autumn 2028.
- The transition is expected to be completed around 2030.
SOURCE
[FCA official AML supervision reform page](https://www.fca.org.uk/firms/aml-supervisory-reform?utm_source]
