By PAUL O’DONOGHUE, Senior Correspondent
THE Financial Conduct Authority (FCA) will become the UK’s primary AML watchdog under a major overhaul of the country’s compliance system.
The move will make the watchdog the main AML supervisor of the legal, accounting and corporate services sectors.
“The FCA will carry out the new supervisory functions as part of its remit,” the government said.
“The FCA will be provided with the powers necessary to succeed in carrying out this role.”
Currently, the UK’s AML supervision is led by three public bodies – – the FCA, the Gambling Commission and HMRC – and 22 private sector professional body supervisors (PBSs).
The UK will now change this system, making the FCA the primary supervisor in the sector.
UK AML review
The decision came after officials reviewed multiple proposals to strengthen the UK’s AML supervision system.
“The government believes that a [single] public organization overseeing professional services firms is the most effective approach,” the UK Treasury said.
“This supervisor will have a large remit. Enabling it to take a risk-based approach [and] target resources towards the highest-risk [firms and professionals].”
The UK government described the move as a ‘simplifying reform’.
“Supervision of accountants, lawyers and trust & company service providers is currently split across 23 different supervisors,” it said.
“[The change] will mean all professional services firms have the same AML/CTF supervisor. This does not change firms’ obligations under the MLRs.”
The government said the FCA will receive additional funding to take over the additional supervision.
“This will enable it to hire and train expert staff, make investments in new technology, and prepare to undertake its new functions,” it said.
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