FCA announces new anti-money laundering regime
The FCA is set to enhance anti-money laundering supervision, aiming for simpler oversight and effective regulation
The Financial Conduct Authority (FCA) has unveiled plans for a new regime aimed at strengthening anti-money laundering (AML) supervision in professional services. Steve Smart, the executive director of enforcement and market oversight at the FCA, emphasised the significance of these changes, stating, “We recognise the benefits of an improved regime for anti-money laundering supervision. These changes will simplify the supervision of professional services, ensure more consistent oversight and help us identify and disrupt crime.”
This initiative is part of the FCA's broader strategy to fight financial crime more effectively whilst collaborating with various stakeholders. As Smart mentioned, “The FCA will work closely with the Government, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), Professional Body Supervisors, HMRC, the firms we will be supervising and others, as we work together to equip the UK to better fight financial crime.”
The new regulatory framework aims to create opportunities for better collaboration between the FCA, law enforcement, and other key partners in combating money laundering. The FCA anticipates significant regional engagement, highlighting that “The FCA operates nationwide and we anticipate having a significant presence for this new regime in our offices outside of London.”
Fighting financial crime remains a top priority for the FCA, which plans to take a proportionate approach to AML supervision, ensuring firms meet clear minimum standards. This will support ongoing partnerships across systems focussed on tackling money laundering. Furthermore, the presence of OPBAS within the FCA is expected to enhance the oversight capabilities, aiding in a smooth transition towards the new regime.
Engagement with professional service firms and their trade bodies will be crucial, as these firms will be supervised strictly for AML purposes. The ultimate goal is to disrupt financial crime effectively and bolster the UK's capacity to address these challenges efficiently.