When will the FCA take over AML supervision of accountants?
Last updated: May 15, 2026
The Financial Conduct Authority (FCA) will take over anti-money laundering (AML) supervision of accountants, but there is no confirmed start date yet. Despite the UK government confirming the future AML framework in October 2025, the change still needs legislation before it can take effect.
For small accountancy firms, the safest planning assumption is that current supervision will continue through 2026 and likely most of 2027.
On balance, 2028/29 appears to be the most realistic planning horizon, based on the need for legislation, implementation work, and a likely phased transition. However, those dates are not confirmed government deadlines.
Contents
Key Takeaways
- Confirmed: The government has chosen the FCA as the future AML supervisor for accountancy firms.
- Still needed: Legislation, implementation rules, registration details, and transition arrangements.
- Planning assumption: Existing AML supervisors remain in place through 2026 and likely most of 2027.
- Unconfirmed: Any exact FCA start date, fee model, or 2028/29 implementation deadline.
What has the government decided about FCA AML supervision?
HM Treasury’s consultation response, published on 21 October 2025, confirmed the government’s decision to move professional-services AML supervision to the FCA. This covers accountancy, legal, and trust or company service provider (TCSP) firms.
That is a major structural reform, but not an immediate operational change. Accountancy firms remain supervised by their existing professional body supervisor (PBS) or HMRC until the legal transfer happens.
The FCA’s 2026/27 annual work programme reflects the same policy direction and refers to the FCA working with government, existing supervisors, and around 60,000 firms that will come within scope.
In other words, the direction is settled, but the handover is still pending.
Why is AML supervision for accountants being reformed?
The reform is intended to simplify and strengthen AML supervision across professional services.
The current model is fragmented, with 22 PBSs and HMRC supervising firms in the accountancy sector. OPBAS, which sits within the FCA, currently oversees PBSs rather than supervising accountancy firms directly.
FCA and OPBAS materials point to continuing weaknesses in parts of the current supervisory system, including consistency and enforcement. The government’s chosen model is designed to create a more centralised approach.
The purpose of the reform matters materially for small practices because it gives an indication of what future supervision may emphasise: clearer accountability, more consistent expectations, and a more standardised supervisory approach.
It does not mean that the core AML duties disappear or pause. The underlying obligations under the Money Laundering Regulations remain the foundation.
Expected timeline for the FCA AML transition
There is no confirmed date for the FCA to begin supervising accountants. The most useful way to think about the timeline is to separate confirmed steps from reasonable planning assumptions.
| Period | Status for accountancy firms |
|---|---|
| October 2025 | The Government confirms the FCA will become the future AML supervisor for accountancy, legal, and TCSP firms. |
| 2026 | Existing AML supervision continues while legislation and policy design are still needed. |
| Most of 2027 | ICAEW expects the current framework to remain in place for most of the year. |
| After 2027 | A phased transition becomes more plausible, subject to legislation and official implementation plans. |
| 2028/29 | Most realistic planning horizon for transition or fuller implementation, but not confirmed by the government. |
This timeline is best used for planning. Firms should watch for legislation, HM Treasury consultation outcomes, FCA implementation updates, and guidance from their current supervisor.
To stay updated, firms can join Evidentia’s free email newsletter for major FCA supervision developments affecting small accountancy practices.
What FCA transition details are still unresolved?
The FCA cannot simply assume AML supervision of accountants without the necessary legal framework. HM Treasury’s duties, powers, and accountability consultation also discusses future FCA registration and gatekeeping arrangements, including possible fit and proper checks, but these are not yet in force for accountancy firms.
Funding is another open point. The government’s consultation says the FCA is intended to recover the day-to-day costs of AML supervision through fees charged to the firms it supervises. That confirms the cost-recovery principle, but not the final fee structure, amounts, calculation method, or timing.
Professional bodies and commentators have therefore raised concerns about cost and burden, but firms should wait for the FCA fee consultation before relying on specific figures. For a more detailed discussion, see our guide to FCA AML supervision costs for accountancy firms.
The transition process also remains unclear. Firms do not yet know exactly how they will move from their current supervisor to the FCA, how existing records will be handled, or whether any firms will experience a period of overlap.
There is also a boundary point worth making. While the planned reform concerns AML supervision, it does not make the FCA the general professional standards regulator for tax advice, accounts preparation, bookkeeping, audit quality, or wider accountancy conduct.
The lack of a confirmed date should not be read as a reason to wait. The useful question is not only when the FCA takes over, but whether current AML records would stand up to a more consistent supervisory model.
What should accountancy firms do now?
You do not need to apply to the FCA or change supervisor now. The better approach is to use the lead time to make the eventual transition easier.
Small firms, including solo practitioners, should focus on practical readiness rather than creating a large compliance project.
Start by checking whether your AML records will make sense to someone from outside the firm. If a supervisor reviewed your files tomorrow, could they see why a client was rated low, medium, or high risk? Could they follow what due diligence was done, when it was updated, and who reviewed it? For the timing question, see our guide to how often accountants should update CDD for existing clients.
Then look at ownership and responsibility. In a small practice, AML often sits with the principal or MLRO by default. That may be fine, but it should still be clear who monitors regulatory updates, who reviews higher-risk clients, and who decides whether an internal concern should become a suspicious activity report (SAR).
Firms should also make sure client information is tidy. A future transition may involve registration, data submission, or confirmation of firm details. Clean client records, current beneficial ownership information, and accessible AML documentation will reduce friction if the FCA introduces a new process.
Training should also be proportionate. A sole practitioner does not need an elaborate training programme, but they should be able to evidence that they have kept up with AML developments. In a small team, staff should understand the firm’s process for escalating concerns and recording decisions.
Finally, assign ongoing monitoring responsibility. One person should be responsible for checking the main sources of change: HM Treasury, the FCA, HMRC, and the firm’s professional body. For many firms, a quarterly check will be more realistic than trying to follow every consultation headline.
What accountancy firms should avoid while the FCA timetable is uncertain
The uncertainty around timing creates room for poor decisions.
Firms should avoid paying attention to unofficial registration claims or assuming they need to apply to the FCA before a formal process exists. They should also avoid budgeting around specific FCA fee figures unless those figures come from official material.
Equally, firms should not wait for the FCA before correcting weak AML controls. The current supervisor still matters, and the same core compliance weaknesses are likely to be relevant under any future model.
The sensible middle ground is to keep operating under the current regime, while preparing records and responsibilities so that a future supervisory transfer is less disruptive.
In summary
Although the FCA takeover is now confirmed as policy, the government has yet to release the official start date. The key message for accountants is to stay with the current AML supervisory framework, track the formal timetable, and use the lead time well.
The firms best placed for transition will be those that can already show clear AML decisions, current records, and proportionate controls.
For a broader view of the reform, including likely supervision changes, costs, and practical preparation steps, read our full FCA AML transition report for accountancy firms.
FAQ
No official date has been confirmed. Current supervision is expected to continue through 2026 and likely most of 2027, with a phased transition likely after that.
No. Accountancy firms should continue to follow the requirements of their current AML supervisor.
No. Future FCA registration has been discussed, but there is no live registration process for accountants under the future regime.
Our view is that 2028/29 is the most realistic planning horizon, based on the current legislative and implementation steps still required. However, this is a planning assumption, not an official government deadline.
No. The planned change relates to AML supervision only, not general regulation of tax, bookkeeping, accounts preparation, audit quality, or professional standards.
Keep current AML records in good order, review responsibilities, monitor official updates, and continue complying with your existing supervisor’s requirements.
The FCA will recover day-to-day AML supervision costs through fees charged to supervised firms. However, the actual fee model, rates, calculation method, and start date have not been confirmed.
References and Source Material
- HM Treasury, Reform of the Anti-Money Laundering and Counter-Terrorism Financing Supervision Regime: Consultation Response
- HM Treasury, AML/CTF Supervision Reform: Duties, Powers and Accountability Consultation
- FCA, Annual Work Programme 2026/27
- ICAEW, Anti-money laundering update: future of supervision and upcoming changes to the regulations
- FCA/OPBAS, OPBAS identifies areas where anti-money laundering supervisors can improve
- Norton Rose Fulbright, Getting ahead of the new FCA powers over professional services firms
