Go-ahead for FCA AML supervision confirmed
The UK Government is to proceed with making the Financial Conduct Authority (FCA) the sole anti-money laundering (AML) regulator across the UK.
The decision was confirmed in HM Treasury's response to the consultation on AML supervisory reform, 'Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF) Supervision Reform: Duties, Powers and Accountability'.
The response sets out the UK Government’s policy position on the powers, responsibilities and accountability framework that will apply to the FCA as it prepares to assume AML/CTF supervisory responsibility for legal, accountancy and trust and company service providers.
It confirms that AML/CTF supervisory responsibilities will transfer from Professional Body Supervisors (PBSs), including the Law Society of Scotland, to the FCA.
The response also outlines the UK Government’s approach to areas including registration and gatekeeping, supervisory powers, information sharing, guidance, enforcement, fees, transition arrangements and accountability.
The Law Society of Scotland encourages Scottish solicitors to review the consultation response and consider its potential implications for their practice.
The reforms will have a significant impact on the future supervision of AML compliance within the legal sector and it is important that firms understand the proposals and the Government’s intended approach to implementation.
We continue to oppose the decision to transfer AML supervisory responsibility for the Scottish legal profession to the FCA. In our consultation response, we reiterated our view that the current approach is neither justified nor proportionate and risks increasing costs, regulatory complexity and duplication, while reducing the benefits of sector-specific and jurisdiction-specific expertise.
While the Government has acknowledged a number of concerns raised by the legal sector and has committed to further engagement on implementation, the Society remains concerned about the practical impact of these reforms on Scottish legal firms and consumers of legal services.
We will continue to update the profession as further information becomes available.
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Keep up to date with the latest information on the UK Government's plans to make the Financial Conduct Authority the UK's single professional services supervisor for AML and what it means for the Scottish legal sector.
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