October Regulatory Updates and Alerts

Long-Awaited Update on the AML/CTF Supervision Regime

On 21 October 2025, HM Treasury published its long-awaited response to the 2023 consultation on reforming the AML/CTF supervision regime.

The government has decided to consolidate supervision of legal, accountancy, and trust and company service providers through the creation of a Single Professional Services Supervisor (SPSS) — selecting Option 3 from the consultation.

The Financial Conduct Authority (FCA) will take on this new supervisory role, operating independently of HMT and with the powers needed to fulfil it. The timeline for implementation will depend on parliamentary approval, with a further consultation on the FCA’s powers expected in early November.

More details here: https://www.gov.uk/government/consultations/reforming-anti-money-laundering-and-counter-terrorism-financing-supervision

FCA Releases Outcomes of Its Multi-Firm Review on ‘Romance Fraud’

The FCA has published findings from its multi-firm review on romance fraud, conducted across six firms — including both established and newer retail banks and payment firms.

While some firms were seen going above and beyond to protect customers, the FCA found many missed opportunities to prevent these types of scams.

The FCA has outlined measures firms can take to strengthen protections, including:
🔹 Better detection and monitoring systems
🔹 Improved staff training
🔹 Early identification of vulnerable customers
🔹 Compassionate aftercare for victims

More details here:

• https://www.fca.org.uk/news/press-releases/banks-need-to-help-break-spell-romance-scams
• https://www.fca.org.uk/publications/multi-firm-reviews/combating-romance-fraud-prevention-detection-and-supporting-victims
• https://www.cityoflondon.police.uk/news/city-of-london/news/2025/june/a-wrong-turn-on-love-lane-city-of-london-police-take-over-city-streets-to-warn-of-the-dangers-of-romance-fraud-with-more-than-106-million-lost-in-the-last-year/

Single List for UK Sanctions Designations from 28 January 2026

OFSI has issued guidance on the move to a single UK Sanctions List, which will become the only source for UK sanctions designations from 9am on 28 January 2026, replacing the current two lists (UK Sanctions List and Consolidated List of Asset Freeze Targets).

Key points:
🔹 Historic OFSI Group ID identifiers will be retained
🔹 File formats unchanged, but new file types will be added
🔹 Search tool upgraded for better results and fuzzy logic searching

Actions for firms:
🔹 Review and update internal systems to use the UK Sanctions List
🔹 Update Group ID identifiers if using in-house screening or manual searches

More details here: https://www.gov.uk/guidance/moving-to-a-single-list-for-uk-sanctions-designations-28-january-2026?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=9608735c-12fd-49ac-8a46-d7a7fd2a4a1d&utm_content=immediately

One Year On – Impact of APP Reimbursement on Victims

The Payment Systems Regulator (PSR) marks the first anniversary of its Authorised Push Payment (APP) reimbursement requirement. Key highlights from the first nine months include:
🔹 £112 million reimbursed to victims
🔹 97% of claims resolved within 35 days; 84% within 5 business days
🔹 Claim volumes down by 15%, showing firms are stepping up to prevent fraud

The PSR’s survey also shows that reimbursement boosts trust in banks, though awareness of the policy remains low, with 71% of victims unaware of their rights.

Read the full update and findings here: https://www.psr.org.uk/news-and-updates/latest-news/news/one-year-on-impact-of-app-reimbursement-on-victims/