HM Treasury Confirms Next Steps for AML/CTF Supervision Reform

HM Treasury has published its response to the AML/CTF Supervision Reform: Duties, Powers and Accountability consultation, setting out how a new anti-money laundering and counter-terrorist financing (AML/CTF) supervisory framework will operate across the professional services sector.

The response confirms the Government’s intention to establish the Financial Conduct Authority (FCA) as the single AML/CTF supervisor for legal, accountancy, and trust and company service providers. The reforms are intended to improve consistency, strengthen supervisory effectiveness, and support the UK’s wider efforts to combat economic crime.

Under the proposed framework, the FCA will assume responsibility for the registration and supervision of firms within scope of the Money Laundering Regulations. The regulator will be equipped with powers to assess firms seeking registration, gather information, monitor compliance, take enforcement action where necessary, and identify businesses operating outside the regulatory perimeter.

The consultation attracted responses from a range of professional bodies and stakeholders. While there was broad support for the objective of strengthening the UK’s AML regime, respondents highlighted the importance of preserving sector-specific expertise, maintaining appropriate safeguards for confidential information and legal professional privilege, and ensuring that implementation is proportionate and cost-effective.

The Faculty Office participated in the consultation process and has continued to engage with HM Treasury throughout the development of the proposals. We note the publication of the Government’s response and will continue to monitor developments closely as the reforms progress towards implementation.

Although further legislation and detailed transition arrangements will be required before the new supervisory model comes into effect, the publication of the response marks a significant step in the Government’s programme of AML/CTF supervisory reform.

The Faculty Office will keep the profession informed of further developments and any implications for notaries as additional details become available.

For further information, readers can access the consultation response on the HM Treasury website.

Read the consultation response: HM Treasury AML/CTF Supervision Reform: Duties, Powers and Accountability – Consultation Response