AML Supervision of Firms shifts from SRA to FCA
AML supervision of firms will move from the SRA to the FCA under government reforms
• The government has announced that anti-money laundering (AML) supervision of law firms will shift from the Solicitors Regulation Authority (SRA) to the Financial Conduct Authority (FCA).
• In its consultation response, HM Treasury describes the current regime as “complex and disjointed” and states that having 23 different supervisors for professional service firms “inevitably leads to inconsistencies in supervision.”
• The response noted that the FCA already supervises financial institutions under the Money Laundering Regulations and highlights this existing role as relevant to the proposed model.
• Under the proposal, the SRA would continue overseeing professional, while AML supervision would move to the FCA.
• The change would reduce the SRA’s responsibilities, removing AML supervision from its remit, leaving it to • Having a single supervisor may create clearer boundaries between conduct regulation and financial crime compliance, reducing the overlap and inconsistency identified in the current supervisory model.
- HM Treasury, Reform of the Anti-Money Laundering and Counter-Terrorism Financing Regime: Consultation Response