FCA report identifies AML enforcement gaps, announces supervisory shift
The latest report from the FCA's OPBAS finds anti-money laundering supervisors have improved since 2018, but enforcement remains a concern. The government decided in 2025 that the FCA will assume full AML supervision for legal and accountancy sectors.
Enforcement still lacks deterrent power
The Office for Professional Body Anti-Money Laundering Supervision (OPBAS), housed within the FCA, has published its latest report, noting that professional services firms' AML supervisors are more effective than at any time since 2018.
Despite these improvements, OPBAS remains concerned that enforcement lacks the necessary deterrent power to prevent firms from falling below minimum standards.
Some Professional Body Supervisors (PBSs) continue to perform poorly in their enforcement approach, and their dual role as both a membership organisation and a supervisor can impede effective action.
Mark Francis, director of specialists at the FCA, stated: 'Fighting financial crime is a priority for the FCA.
In recent years, OPBAS has driven progress in the way money laundering is tackled in the legal and accountancy sectors, but improvements are still required.
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FCA to centralize AML supervision
OPBAS, founded in 2018, oversees 25 Professional Body Supervisors tasked with preventing financial crime in the accountancy and legal sectors.
It has increasingly utilized various tools to drive improvements among PBSs, including taking its first enforcement action against a PBS last year for failing to meet Money Laundering Regulations requirements.
A significant shift is underway: in 2025, the Government decided that the FCA will assume full anti-money laundering (AML) and counter terrorist financing (CTF) supervision in these professional services sectors.
This decision aims to simplify supervision, ensure more consistent oversight, and enhance efforts to identify and disrupt financial crime across the UK.
Necessary step, but challenges remain
The move to centralize supervision under the FCA is a logical response to persistent enforcement weaknesses and the inherent conflict of interest for PBSs.
While simplifying oversight, the transition itself will require careful management to ensure continuity and avoid disruption in a critical area of financial crime prevention.
Its ultimate success hinges on the FCA's capacity to effectively integrate and enforce new standards across a diverse and complex professional landscape.