On 21 October 2025, HM Treasury (HMT) issued a long-awaited decision following its 2023 consultation on the future of anti-money laundering (AML) supervision. It has confirmed it intends to consolidate AML supervision into a single statutory body, with the Financial Conduct Authority (FCA) taking on the role. This will remove ICAEW and all professional body supervisors from AML supervision.
We are extremely disappointed by this decision and we will continue to engage with ministers and Treasury to ensure that all of the unfortunate ramifications of this decision are understood, and to suggest alternative ways forward
The approach chosen by HMT will almost certainly create more regulatory confusion and increase both the cost and administrative burden on firms, who will face multiple inspections from different regulators, as ICAEW will continue to monitor firms under the Practice Assurance scheme. The result could be an increase to compliance costs at a time when many businesses are already facing growing pressures.
This policy decision requires changes in primary legislation, which will take time to implement.
Until we have greater clarity on the way forward and timescales involved, we will continue to provide AML supervision to all our firms with the same high standards and professionalism as always.
We believe that this decision will increase the regulatory burden and costs to firms, making business growth more challenging.
Useful links
- Read HM Treasury's announcement
- Read ICAEW article: Handing AML supervision to the FCA will increase costs for business
- Read ICAEW's submission to HMT's 2023 consultation
- Read our news release in response to HMT's announcement
- Read article on HMT's consultation: AML supervision reform: Duties, powers, and accountability consultation
