AML Supervision in the UK: Which Regulator Oversees Your Business
Let’s be real – money laundering isn’t just a problem for banks and offshore fraudsters. In the UK, it’s a billion-pound issue that touches accountants, lawyers, and estate agents just as much as the financial sector.
A little perspective from the last decade, sourced from industry reports:
- Almost 10% of all AML events globally are compliance failures – businesses simply not following the rules. The US tops the list with more than 11,472 events, roughly 3.5 events per 100,000 people, while the UK comes second with 1,664 recorded events, nearly 2.5 events per 100,000 people.
- In the UK, money laundering is the most common AML event (27.5%), closely followed by AML compliance failures (23.9%) and financial fraud (13.4%).
Additionally, the National Crime Agency’s 2023-24 annual report shows a 25% increase in high-impact disruptions related to money laundering threats, reflecting growing enforcement and concern over illicit financial activity.
So, what does this mean for your business? Simple: if you’re an accountant, solicitor, or estate/letting agent, AML compliance isn’t optional – it’s the law. Staying on top of due diligence and conducting regular AML checks isn’t just about ticking boxes – it’s about protecting your business, your clients, and your reputation.
What Are AML Checks, and Why Do They Matter?
Think of AML checks as your business’s “financial hygiene.” They’re designed to make sure you know who your clients are, where their money comes from, and whether any transactions might raise red flags. Typical checks include:
- Verifying client identity, addresses, and company structures
- Monitoring transactions to ensure consistency with expectations
- Reporting any suspicious activity to the relevant authorities
For professionals, these checks:
- Prevent involvement in criminal activity
- Safeguard your firm’s reputation
- Keep you compliant with AML authorities
Which Businesses Must Register for AML and Which Authorities Supervise Them?
In the UK, your AML supervisor depends on your business type.
Professional Body Supervisors (PBSs)
Most practising accountants and solicitors are supervised by their professional bodies, including:
- ICAEW – Institute of Chartered Accountants in England & Wales
- ACCA – Association of Chartered Certified Accountants
- ICAS – Institute of Chartered Accountants of Scotland
- SRA – Solicitors Regulation Authority (England & Wales)
HMRC (His Majesty’s Revenue & Customs)
HMRC supervises certain non-financial businesses considered higher risk. This includes estate and letting agents, high-value goods and art dealers, money service businesses, and Trust or Company Service Providers that are not under PBS supervision.
Recently, HMRC issued over £5.5 million in fines and suspended or cancelled the registration of 27 businesses for failing to comply with AML registration requirements.
Do not ignore registering with HMRC – 5 easy steps:
- Set up a Government Gateway account
- Apply via the HMRC AML registration portal
- Upload your AML policies
- Pay the registration fee
- Await approval (HMRC may request further information)
FCA (Financial Conduct Authority)
The FCA oversees financial institutions, cryptoasset businesses, financial advisers, and other regulated financial service providers. Registration and authorisation requirements depend on the services offered and generally involve a more detailed application and regulatory review than HMRC registration.
Gambling Commission
The Gambling Commission supervises casinos, betting shops, and lotteries. AML registration is typically integrated into the licensing process.
What Happens If You Don’t Register?
Failing to register with the correct AML supervisor can have serious consequences. Businesses may face fines from hundreds to tens of thousands of pounds, and in extreme cases, criminal prosecution. HMRC can publish the names of non-compliant firms, leading to reputational damage. For accountants, solicitors, and estate agents, where trust is critical, the loss of credibility can often exceed any financial penalty.
Staying compliant with AML regulations is easier than you think – especially with Enforcio by your side. Our online toolkit takes the stress out of due diligence, allowing you to complete KYC checks efficiently and confidently.
- Designed by AML specialists for UK small businesses in high-risk sectors such as accounting, legal, and real estate
- Automated risk assessments via a proprietary algorithm with quick client onboarding
- Role-based user access and full audit trails for compliance
- Integration with international databases and ongoing monitoring
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