AML supervision moving to the FCA: what accountants need to know

Anti-money laundering (AML) supervision of UK accountants is moving to the Financial Conduct Authority (FCA), replacing ICAEW, ACCA, AAT, the other professional bodies and HMRC. Nothing changes yet: the FCA’s indicative timeline starts a phased transition in late 2028 and completes it around 2030. Until then, keep following your current supervisor’s rules.

What has been decided?

The government will create a single professional services supervisor, and the FCA will do the job. HM Treasury confirmed this in its response to the 2023 consultation, last updated on 21 October 2025.

The Treasury chose this over three other models, including a strengthened OPBAS (the FCA’s Office for Professional Body AML Supervision). Its reasons were that supervision is split across 23 professional services supervisors, causing inconsistency, and that a public body can take tougher enforcement action across about 60,000 firms. Once the professional bodies lose their AML role, OPBAS will no longer be needed.

Who is affected?

Every accountancy business supervised for AML today by a professional body or by HMRC will move. The FCA’s reform page, published on 22 September 2026, gives these estimates, which it says may change:

Firms already supervised by the FCA under the Money Laundering Regulations are not affected. Your professional body keeps its other roles, such as practising certificates, conduct and discipline. See practice licence requirements.

When will the FCA take over?

The FCA gives an indicative four-stage timeline:

1. 2026: the FCA works with stakeholders on its plans.
2. 2027: after the expected legislation, the FCA completes its operating model review.
3. Late 2028: a phased transition begins and the new supervision launches.
4. Around 2030: the remaining professional body supervisors move across.

The FCA says the transition is likely to happen in phases. Its page gives both “late 2028” and “autumn 2028” for the start, so treat the dates as indicative. ICAEW told members in June 2026 that it expects to remain the AML supervisor “through this year, next year and likely much of 2028”.

What powers will the FCA have?

HM Treasury published its final policy positions on 18 June 2026, after a consultation that ran from 6 November to 24 December 2025. The response covers:

• registration and gatekeeping of supervised firms
• supervisory and information-gathering powers
• enforcement
• guidance, which will move to the FCA
• funding, transition and accountability

The FCA says the key changes are in the Financial Services and Markets Bill, with further changes made by amending the Money Laundering Regulations 2017. Legal professional privilege is protected: the FCA cannot use its information-gathering powers to obtain privileged material.

What will it cost?

Fees are not yet known. The government will fund the set-up through the Economic Crime Levy. After that, the FCA function will be paid for by fees charged to supervised firms, and the FCA will consult on its fees approach first.

ACCA has said it is disappointed by the decision and warns it will “most certainly introduce additional regulatory burdens and costs for members”, especially compared with HMRC’s current AML fees. Budget for change, but do not assume a figure.

What has not changed

Your AML duties stay the same. You still need to:

• be registered with an AML supervisor before you offer accountancy services
• keep a firm-wide risk assessment
• carry out risk-based customer due diligence on every client
• report suspicions to the National Crime Agency through your MLRO

ICAEW reminds firms that Companies House identity verification cannot be relied on for AML purposes. See our guides to AML registration for accountants, ACSP registration and onboarding a new client.

What advisers should do now

The FCA says firms “do not need to take any action now”. Sensible steps are:

1. Keep your current supervisor. Renew and pay fees as normal.
2. Tighten your records. The FCA will inherit your supervision history, so make sure risk assessments, CDD files and training logs are up to date.
3. Watch for the fees consultation. It will set what you pay from transition.
4. Plan for dual oversight. From transition, the FCA will handle AML and your professional body the rest.
5. Ask your supervisor. The FCA directs questions to your current professional body supervisor for now.

Frequently asked questions

When will the FCA start supervising accountants for AML?

The FCA’s indicative timeline has a phased transition beginning in late 2028 and completing around 2030. It depends on the government passing legislation first.

Do I need to register with the FCA now?

No. The FCA says firms do not need to take any action now. Stay registered with your current AML supervisor.

Will HMRC-supervised accountants move to the FCA too?

Yes. The reform covers accountancy firms and trust and company service providers supervised by HMRC, as well as those supervised by professional bodies.

Will I still be a member of ICAEW, ACCA or AAT?

Yes. The professional bodies lose only their AML supervision role. They keep their wider regulatory and representative functions.

How much will FCA AML supervision cost?

No fees have been set. The FCA will consult on its fees approach before it takes on the role.