Proposed Changes to AML Supervision

21 October, 2025

HM Treasury has today announced proposed changes to the supervision of anti-money laundering (AML) work in professional services. Following a 2023 consultation, the government proposes to establish a Single Professional Services Supervisor within the FCA to take over direct supervision of AML by lawyers, accountants and others. The operation of this approach will be the subject of further consultation and legislation. There is more detail on GOV.UK.

Sheila Kumar, Chief Executive of the Council for Licensed Conveyancers, said: “This is not the outcome we had expected because, as we and others (including all the other legal sector regulators) made clear to HM Treasury in response to the 2023 consultation, it will create a dual supervision regime and risks increasing the burden on the regulated community and a financial burden that will be passed on to users of legal services. We await the detail and the next consultation on the operation of the new arrangements.   

“The CLC will be working with HM Treasury and the FCA and the other legal sector regulators to ensure the new system is as efficient and effective as possible in tackling money laundering and terrorist financing. We are concerned that creating a separate regime for AML supervision will require significantly more coordination between front line regulators like the CLC and the FCA as the supervisor of AML compliance but risks opening up gaps in the insight that we currently have across all areas of the practices that we regulate.”