Regulatory shifts in AML and CTF supervision for professional services

Regulatory bodies in Australia and the United Kingdom are shifting their approach to anti-money laundering (AML) and counter-terrorist financing (CTF) supervision for professional services.

In Australia, AUSTRAC has entered an enforcement phase following the enrolment deadline for law firms and legal practices. The agency is utilizing section 167 of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 to issue notices. These notices allow AUSTRAC to gather intelligence and investigate whether businesses are meeting their obligations, even targeting individuals who possess relevant information or documents.

In the United Kingdom, the government has decided to transfer AML and CTF supervision for professional services firms to the Financial Conduct Authority (FCA). This transition, expected to begin before the end of 2028, would see the FCA take over duties currently held by professional body supervisors. While organizations like the Solicitors Regulation Authority (SRA) will maintain oversight of general professional responsibilities, the division of regulatory duties between the FCA and professional bodies remains a key area of focus for the conveyancing sector.