HM Treasury’s Supervision Report: 2023-24 is the 12th report on AML/CTF supervision

HM Treasury works closely with the supervisors - the Financial Conduct Authority (FCA), His Majesty’s Revenue and Customs (HMRC), the Gambling Commission (GC) and the 22 legal and accountancy Professional Body Supervisors (PBSs) - as well as with the Office for Professional Body Anti-Money Laundering Supervision (OPBAS).

HM Treasury’s annual supervision report for the financial year 2023-24 provides important insight into the activities of the UK’s 25 anti-money laundering/counter-terrorist financing (AML/CTF) supervisors.

• Anti-money laundering and counter-terrorist financing: Supervision Report: 2023-24 - Published 13 March 2025
• https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2023-24/anti-money-laundering-and-counter-terrorist-financing-supervision-report-2023-24-accessible

This is HM Treasury’s 12th report on AML/CTF supervision, and this report:-

1. Provides information on the activities of AML/CTF supervisors in the 2023-24 financial year. Section 51 of the Money Laundering Regulations (MLRs) fulfils HM Treasury's obligation to publish an annual report on supervision activity using information requested from supervisors.
2. The information provided in previous years has been significantly expanded. It includes new metrics on the guidance and training supervisors provide for firms and data on how supervisors target activity according to risk.
3. Offers a detailed look at how the FCA has supervised firms during the period, the risks it has observed, and the outcomes it aims to drive across the financial system.  
4. Provides a comprehensive overview of the activities and measures the FCA and other supervisors took to combat money laundering and terrorist financing over the past year.
5. It is part of the broader Economic Crime Plan 2023-26, which aims to strengthen the UK's defences against economic crime and support a transparent financial system.

Key highlights include:

6. Enhanced Supervision: The FCA has increased its supervisory activities, ensuring that over 90,000 businesses maintain robust controls against illicit finance.
7. Risk-Based Approach: The report emphasises a risk-based approach, with new metrics on guidance and training provided to firms.
8. Compliance and Enforcement: There has been a focus on supporting firms in their compliance efforts and taking enforcement actions where necessary.

Other core highlights

9. The report stresses a data-driven, risk-based approach, reminding firms that poor controls will not go unnoticed, especially in sectors like payments, e-money, crypto, and retail banking.
10. Over 1,300 firms were assessed across financial services, with 301 receiving deeper supervisory engagements—a clear indication of increased scrutiny across high-risk areas.
11. Key risks identified included weaknesses in customer risk assessments, failure to keep CDD current, and over-reliance on post-onboarding transaction monitoring to detect risk.
12. The FCA emphasised the importance of MI (Management Information) and QA frameworks, citing their underuse in small firms – critical tools often missing in action.
13. There’s been growing collaboration with OPBAS and other professional bodies to raise supervisory standards in the legal and accountancy sectors.
14. In 2022-23, 47 suspicious activity reports (SARs) were received from whistleblowers – up from 28 in the previous period. The FCA is actively using these reports to improve targeting.

Source

https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2023-24/anti-money-laundering-and-counter-terrorist-financing-supervision-report-2023-24-accessible