The UK Treasury has published its 2024-25 Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Supervision Report, providing an overview of the supervisory activities across various regulated sectors in the UK.
Overview of Supervisory Activities
The report involves the performance and enforcement actions of 25 AML/CFT supervisors, such as the Financial Conduct Authority (FCA), HMRC, Gambling Commission, and professional body supervisors in legal and accounting fields. Together, these bodies oversee nearly 95,000 regulated entities.
Supervisory activity increased during the reporting period, with approximately 9% of supervised entities deemed high-risk, a figure consistent with previous years. Overall, there were 1,518 formal enforcement actions and 1,905 informal actions recorded, indicating ongoing regulatory scrutiny.
Enforcement Outcomes and Financial Penalties
The use of financial penalties saw an notable increase during 2024-25. Supervisors issued a total of 1,085 fines valued at GBP 59.5 million, up from the previous year’s GBP 41.5 million. The average fine was around GBP 55,000, with penalties varying significantly by sector and risk profile.
The scale of enforcement activities reflects the complexity of the UK’s AML/CFT supervisory regime. Supervisors conducted nearly 8,000 desk-based reviews and onsite inspections during the year, supported by approximately 693 full-time equivalent staff dedicated to AML/CFT supervision. Total supervisory expenditure was GBP 57 million, a 24% increase from the previous year.
Beyond enforcement, the report underscores the importance of risk assessment and data collection. About 35% of businesses were categorized as medium-risk, with approximately 56% assessed as low-risk. New metrics introduced during the year show that around 15% of non-compliant firms had also been non-compliant in their previous assessments.
A significant development noted in the report is the formalization of co-operation and information-sharing mechanisms among supervisors. For the first time, data on referrals, disclosures, and engagement with guidance were collected as mandatory elements of supervision. This change reflects a focus on collaboration between regulators, law enforcement, and other public bodies.
