The Financial Conduct Authority is due to assume the policing of money laundering regulations from the Solicitors Regulation Authority, and other legal and accountancy bodies, at the end of 2028. That date will mark the start of a transition, with the handover expected to be completed by 2030. The Financial Services and Markets Bill, now moving through Parliament, should receive royal assent early next year to begin the process.
FCA’s Smart Outlines Partnership Approach With Law Firms
Stephen Smart, FCA lead for financial crime, acknowledged that the organisation has yet to properly engage with firms and lawyers over the change, but that this will change significantly in the coming months. He emphasized that the FCA will not apply a one-size-fits-all approach and will avoid overloading firms with paperwork.
“We will be creating friction for criminals but letting everyone get on with their business,” Smart said. “We can do it with a proportionate, predictable and technology-enabled approach.” Smart said the FCA is committed to earning the trust of the legal sector through ongoing engagement, insisting that the regulator is not on a different side to law firms in the fight against money laundering.
Concerns Over Dual Regulation Remain
As of April 2025, 5,569 firms fell within the scope of the money laundering regulations. More than 1,000 of these firms had just one practising solicitor. There remains uncertainty among law firms about what they can expect from the FCA and what they should be doing to prepare. The Solicitors Disciplinary Tribunal warned earlier this year that firms could face “double jeopardy” if investigated by multiple regulators simultaneously.
Government Strategy Emphasizes Risk-Based Oversight
The government recently published its anti-money laundering strategy covering the next three years, outlining plans for a more consistent, intelligence-led, and outcomes-focused supervisory framework. The strategy promises clearer expectations and a simpler supervisory environment to help regulators target high-harm firms, products, and behaviours.
Enforcement powers are set to expand. The Treasury plans to consult on granting additional authority to both the SRA and FCA, including unannounced visits and premises searches for cash. Separate consultations will explore measures against professional enablers linked to hostile states and corrupt elites who pose national security risks.
Law Society Calls for Measurable Outcomes
Law Society president Mark Evans welcomed the strategy’s focus on targeting serious criminal activity rather than increasing routine compliance burdens. He urged the government to support reforms with measurable outcomes that show how they disrupt and prevent crime, rather than relying on the volume of checks firms perform.
Evans stressed that solicitors expect alignment between the strategy’s commitment to proportionate, risk-based regulation and the supervisory approach used across the sector.
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