HM Treasury has decided to create a Single Professional Services Supervisor (SPSS), for all anti-money laundering (AML) and counter-terrorism financing (CTF) supervision in the UK.
The government believes that a public organisation overseeing professional services firms is the most effective approach to AML/CTF. And it will be the Financial Conduct Authority (FCA) who will carry out the new supervisory functions as part of its remit, and will be tasked with working with the professional services sector, other regulators, and law enforcement agencies to improve the UK’s defences against money laundering. The FCA will carry out these functions independently of HM Treasury and will be provided with the powers necessary to succeed in carrying out this role.
The FCA will now supervise the 60,000 firms that carry out activities within scope of the Money Laundering Regulations as Legal Service Providers (LSPs), Accountancy Service Providers (ASPs), and Trust and Company Service Providers (TCSPs). In practice, this means that all firms currently supervised for AML/CTF matters by a PBS, and all ASPs and TCSPs supervised by HMRC will be supervised by the FCA.
Lucy Rigby, the economic secretary to the Treasury said: “AML/CTF supervision is crucial work in the fight against crime and corruption which, ultimately, is the job of the state. The FCA will have the powers and resources it needs to help firms comply with the regulations, work closely with law enforcement, and take robust action where a minority of firms continue to help bad actors prosper. Preventing economic crime requires the ongoing support of regulated firms and professional bodies and I look forward to working with you as we make this change.”
AAT CEO Sarah Beale added: “AAT acknowledges the Government’s decision to transfer AML supervision for AML)and CTF supervision to the FCA. Whilst this change won’t happen overnight, it will be a significant shift for the accountancy sector, and we will all require a clear transition plan. We remain committed to supporting our licensed members with the expert guidance, resources, and reassurance they need to stay prepared and compliant throughout this transition and beyond.
“While there will be challenges ahead, such as ensuring a seamless data transfer and maintaining specialised support, AAT is focused on making this change as smooth as possible. With the direction now set, we’ll work closely with the Government, the FCA and other stakeholders to ensure an effective transition, delivering a robust supervisory system that upholds the highest standards for our profession.’’
