This HM Treasury consultation is seeking views on their proposals for structural reform of anti-money laundering (AML) supervision.
This follows their 2022 Review of the UK’s regulatory and supervisory regime, which concluded that while there had been continued improvement to the regime, some weaknesses in supervision may need to be addressed through structural reform.
The outcome of the consultation has important implications if AML supervision is transferred to another body, which could be another legal sector regulator (such as the SRA) or a public body.
The consultation sets out four options:
- OPBAS+: no structural change but enhanced powers for OPBAS, the current oversight regulator for the legal and accountancy sector regulators.
- Professional Body Supervisor (PBS) consolidation: There could be either one accountancy sector supervisor and one legal sector supervisor, both with UK-wide remits, or one accountancy sector supervisor and one legal sector supervisor within each jurisdiction. Under this model, CILEX Members and firms could be supervised under the MLRs by another legal sector regulator such as the SRA.
- Single Professional Services Supervisor: A single body would supervise all legal and accountancy sector firms or sole practitioners under the MLRs. This would probably be a public body rather than a PBS.
- Single Anti-Money Laundering Supervisor: As above but also including the statutory regulators (HMRC, Gambling Commission and FCA)
Additionally, they are seeking views on whether to expand requirements on supervisors and their regulated populations relating to sanctions compliance.
The consultation is open until 30 September 2023.
