Summary
What this article covers in 30 seconds
- The FCA is poised to replace professional body supervisors for AML and CTF oversight in legal and accounting sectors.
- Joe Norburn says firms will need clearer evidence for risk assessment, control testing and governance.
- Senior leaders must treat AML risk as a regular governance issue, not a side task.
- Firms that adapt can show clients and stakeholders that they take financial crime risk seriously.
The anti-money laundering (AML) landscape is about to change dramatically for accountancy firms. With the FCA poised to take over AML and counter-terrorist financing (CTF) supervision from 23 professional body supervisors for the legal and accounting sectors, firms will face a new era of regulatory rigour under the single regulator.
Joe Norburn, CEO of TCC Group, shared his views on this “transformational” shift with AB.accounting. He explains that firms will no longer be able to rely on broad statements of compliance. Instead, they will need to “provide clearer evidence for risk assessment, control testing and governance”. This means moving beyond tick-box exercises and embracing demonstrable compliance.
Norburn warns that AML can no longer be treated as a side task. “Practices will likely need to adopt a more structured approach to governance, with proper reporting, clear escalation routes and senior leaders engaging with AML risk on a regular basis.” Accountability must sit at the top table.
What does this mean for accountancy firms?
- Greater scrutiny: firms should expect deeper reviews of AML frameworks and evidence-based assessments.
- Structured governance: clear reporting lines, escalation processes and board-level engagement will become essential.
- Data-driven compliance: firms will need systems to monitor, document and demonstrate AML controls.
Why accountancy firms must act now
The FCA’s involvement signals a shift towards higher standards and stronger enforcement. Firms that fail to adapt risk regulatory penalties and reputational damage. Firms that embrace the change can use compliance to demonstrate to clients and stakeholders that they take financial crime risk seriously.
Is your firm ready for the FCA’s tougher AML regime?
Recordsure helps firms build and implement resilient compliance frameworks that meet regulatory expectations and protect reputation.
Frequently asked questions
The FCA is preparing to take over AML and CTF supervision from 23 professional body supervisors for the legal and accounting sectors.
They will need clearer evidence for risk assessment, control testing and governance, supported by monitoring, documentation and demonstrable controls.
Norburn says AML risk should be managed through structured governance, clear reporting, escalation routes and regular engagement by senior leaders.