AML/CTF/CPF
Industry News
The letter also outlines the FCAs 2026 priorities.
Key updates include:
➡️ Digital ID to Streamline KYC: With 31 firms already testing AI-enabled onboarding and verification solutions, the FCA urges rapid progress on the UK’s digital identity framework, highlighting its potential to simplify know your customer (KYC), and improve firms’ financial crime defences;
➡️ Preparing to Supervise Professional Services for AML: Ahead of new legislation, the FCA is preparing to assume AML supervision of professional services, signalling a major shift in oversight and expectations for gatekeeper sectors;
➡️ AI Testing Expands for Financial Crime Use Cases: With 31 firms already testing artificial intelligence (AI) models with the FCA, supervisory focus will move toward outcome-based monitoring, supporting innovation while mitigating fraud, scams, and financial crime risks; and
➡️ Stronger Market Integrity & Defence Investment: The FCA plans to mobilise system-wide collaboration on issues impacting national and economic security, including illicit finance threats that undermine UK markets.
✅ Firms should assess their readiness for enhanced AML supervision, stay informed of evolving policy changes surrounding emerging digital ID capabilities, and strengthen financial crime controls as the FCA shifts toward more data-driven, outcome-focused oversight.
