The Direction of Travel is Clear. IAB Members Are Already on the Journey.
At a glance
Article summary
HM Treasury has confirmed the next stage in the transition towards the Financial Conduct Authority becoming the UK’s AML supervisor for accountancy service providers. There is no confirmed implementation timetable, so firms must continue meeting their existing AML obligations. The future model will place greater emphasis on evidence, data, consistency and risk-based supervision, areas in which IAB members have already been developing their systems and working practices.
What the Government’s announcement means
HM Treasury has now published its response to the consultation on the future of AML/CTF supervision, confirming the next stage in the transition towards the Financial Conduct Authority becoming the UK’s AML supervisor for accountancy service providers.For many across the profession, this announcement raises understandable questions. What happens next? When will the changes take place? What do firms need to do now?
The answer to the last question is actually the simplest.
Keep doing what you’re doing.
Although the Government has confirmed the policy direction, there is currently no confirmed implementation timetable. The transition will take time and, until those changes formally take effect, it remains business as usual. Firms should continue to meet their existing AML obligations exactly as they do today.
What has changed is that we now have much greater clarity about the future direction of supervision.
A more evidence-led supervisory model
The Government has confirmed that the future model will place greater emphasis on evidence, data, consistency and risk-based supervision. Supervisors will increasingly expect firms not simply to have AML policies and procedures, but to demonstrate how those policies operate in practice and how decisions are reached.
For IAB members, none of this should come as a surprise.
For several years we have been preparing for exactly this direction of travel.
Our investment in AML Complete, our move towards more evidence-based supervision, our focus on risk assessments, independent reviews, monitoring and practical compliance have all been built around one simple principle: good AML supervision should help firms understand risk, evidence compliance and continuously improve.
That philosophy aligns closely with the direction now being set out by Government.
The IAB’s role during the transition
Throughout this transition, the IAB has continued to engage constructively with the FCA, sharing our experience of supervising firms and demonstrating how technology and data can support effective, proportionate supervision. We are committed to ensuring that the practical realities facing firms remain part of the conversation as the new framework develops.
This means IAB members are not starting from scratch.
They have already been building the skills, systems and behaviours that the future supervisory model will require.
That is a significant advantage.
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Why IAB members are already prepared
While some firms across the profession may now be looking at how they adapt to a more evidence-led approach, IAB members have already been developing those disciplines through our guidance, supervision and technology.
AML compliance is about more than regulation
It is also important to remember that AML compliance has never been about satisfying a regulator.
It is about protecting your practice, protecting your clients and protecting the reputation of the profession. Good firms should want robust AML systems because they are good businesses, not simply because they are required to have them.
Continuing support from the IAB
Over the coming months we will continue working closely with the FCA as the transition develops, while keeping members fully informed of any future announcements. We will continue investing in practical guidance, technology and support to ensure that members remain ahead of the changing regulatory landscape.
What IAB members should do now
For now, my advice is straightforward.
Do not wait for a transition date.
Continue strengthening your firm’s AML framework today. Continue embedding good habits, maintaining robust records and making evidence-based decisions. Every improvement you make now will strengthen your business today and place you in an excellent position for whatever comes next.
The destination is now clear. The good news for IAB members is that they have already started the journey.
AML supervision
