The UK legal sector is approaching a significant change in anti-money laundering (AML) oversight, following the Government’s confirmation that the Financial Conduct Authority (FCA) will become the Single Professional Services Supervisor (SPSS) for AML and counter-terrorist financing across the UK’s legal and accountancy sectors.

Under the proposal, responsibility will move from 22 professional body supervisors, including nine legal-sector regulators, to a single independent authority. This reform responds to longstanding concerns raised by the Financial Action Task Force (FATF) and aims to deliver stronger, more consistent oversight ahead of the UK’s next mutual evaluation in August 2027.

The FCA currently supervises over 17,000 firms for AML. Its remit would expand to nearly 60,000, including 7,500 legal sector firms. HM Treasury launched a consultation on 6 November 2025, open until 24 December 2025. While final details are pending, HKA recommends firms use this period to review their frameworks and prepare for a transition to FCA supervision.

“This is a fundamental shift in supervisory culture. The FCA will expect legal firms not only to comply with AML rules, but to demonstrate that their controls work in practice. Firms need to prepare now to meet these expectations.”

Priya Giuliani, Partner, HKA

The FCA’s data-led, enforcement-heavy model contrasts sharply with the guidance-based approach taken by legal supervisors. In financial services, the FCA issues millions in AML fines annually, deploys Skilled Person reviews, and imposes business restrictions where controls fall short. The largest SRA AML fine last year was £300,000 a figure broadly equivalent to the lowest FCA AML fine in 2023/24.

“Firms should treat 2026 as a transition year. Strengthen your firm-wide risk assessment, upgrade governance, and ensure you can evidence control effectiveness. By acting now, firms can position themselves to meet tightened expectations, protecting clients and reputations as the regulatory landscape evolves.”

Priya Giuliani, Partner HKA

Key areas for review include:

• Reviewing firm-wide risk assessments to ensure they are robust and data-driven.
• Building clear audit trails that demonstrate controls work in practice.
• Strengthening governance and accountability, including senior management oversight.
• Assessing outsourced AML processes to ensure risks are understood and managed effectively.

HKA’s financial crime team includes former regulators, investigators, Money Laundering Reporting Officers (MLROs), and Skilled Persons with decades of FCA supervision experience. The firm supports organisations in assessing and improving AML frameworks, governance, and control effectiveness.

Media contact

Name	Jill Dawson
Title	Senior Marketing and Communications Manager
Number	+44 20 7618 1200
Email	jilldawson@hka.com