UK - AML/CTF responsibilities for professional services to be handled by the FCA.

Yesterday's decision by the UK Government to bring supervision of professional services such as the provision of legal, accountancy and trust & corporate service providers under the supervision of the Financial Conduct Authority (FCA) is an interesting development.

This model for supervision of professional services has long been established in many common law jurisdictions such as Gibraltar and has helped to establish and strengthen legislation, standards and professional development amongst service providers ranging from banks, fund managers, accountants, insurance firms and TCSPs. Granting one regulatory body that responsibility will allow the FCA to create a mission plan for the financial system as a whole while respecting the value, needs and risk framework of each industry under their oversight. 

It encourages professionals to work together to promote, protect and develop a jurisdiction while giving clients the peace of mind that all such service providers are subject to regulatory oversight. 

Ultimately, the goal is to address gaps to reduce abuse of the financial system for illicit purposes while protecting and growing as a society. An important aim in these challenging and turbulent times.

Perhaps the UK is willing to take on board some of the lessons learned from its overseas partners. Really the question, particularly following initiatives to increase transparency such the PSC and ROE regimes, is: why has it taken them so long? 

https://www.gov.uk/government/consultations/reforming-anti-money-laundering-and-counter-terrorism-financing-supervision

https://www.step.org/industry-news/uk-aml-supervision-be-consolidated-under-fca