diff --git a/.github/CODEOWNERS b/.github/CODEOWNERS
index 0950da58cae..796a961d095 100644
--- a/.github/CODEOWNERS
+++ b/.github/CODEOWNERS
@@ -44,7 +44,7 @@ app/util/walletconnect.js   @MetaMask/sdk-devs @MetaMask/mobile-platform
 
 # Accounts Team
 app/core/Encryptor/   @MetaMask/accounts-engineers
-app/core/Engine/controller/AccountsController   @MetaMask/accounts-engineers
+app/core/Engine/controllers/accounts   @MetaMask/accounts-engineers
 
 # Swaps Team
 app/components/UI/Swaps              @MetaMask/swaps-engineers @MetaMask/mobile-platform
diff --git a/app/core/Engine/Engine.ts b/app/core/Engine/Engine.ts
index eeb4ddc899c..a23bed16d3e 100644
--- a/app/core/Engine/Engine.ts
+++ b/app/core/Engine/Engine.ts
@@ -152,8 +152,9 @@ import {
   AccountsControllerSelectedAccountChangeEvent,
   AccountsControllerAccountAddedEvent,
   AccountsControllerAccountRenamedEvent,
-} from './controllers/AccountsController/constants';
-import { createAccountsController } from './controllers/AccountsController/utils';
+} from './controllers/accounts/constants';
+import { AccountsControllerMessenger } from '@metamask/accounts-controller';
+import { createAccountsController } from './controllers/accounts/utils';
 import { captureException } from '@sentry/react-native';
 import { lowerCase } from 'lodash';
 import {
@@ -339,8 +340,22 @@ export class Engine {
     });
 
     // Create AccountsController
+    const accountsControllerMessenger: AccountsControllerMessenger =
+      this.controllerMessenger.getRestricted({
+        name: 'AccountsController',
+        allowedEvents: [
+          'SnapController:stateChange',
+          'KeyringController:accountRemoved',
+          'KeyringController:stateChange',
+        ],
+        allowedActions: [
+          'KeyringController:getAccounts',
+          'KeyringController:getKeyringsByType',
+          'KeyringController:getKeyringForAccount',
+        ],
+      });
     const accountsController = createAccountsController({
-      messenger: this.controllerMessenger,
+      messenger: accountsControllerMessenger,
       initialState: initialState.AccountsController,
     });
 
diff --git a/app/core/Engine/controllers/accounts/README.md b/app/core/Engine/controllers/accounts/README.md
new file mode 100644
index 00000000000..24ea735bd59
--- /dev/null
+++ b/app/core/Engine/controllers/accounts/README.md
@@ -0,0 +1,3 @@
+# Controllers owned by the Accounts team
+
+This folder contains controllers that are owned by the Accounts team.
diff --git a/app/core/Engine/controllers/AccountsController/constants.ts b/app/core/Engine/controllers/accounts/constants.ts
similarity index 100%
rename from app/core/Engine/controllers/AccountsController/constants.ts
rename to app/core/Engine/controllers/accounts/constants.ts
diff --git a/app/core/Engine/controllers/AccountsController/utils.test.ts b/app/core/Engine/controllers/accounts/utils.test.ts
similarity index 62%
rename from app/core/Engine/controllers/AccountsController/utils.test.ts
rename to app/core/Engine/controllers/accounts/utils.test.ts
index 25f95dd2e14..67b640cb448 100644
--- a/app/core/Engine/controllers/AccountsController/utils.test.ts
+++ b/app/core/Engine/controllers/accounts/utils.test.ts
@@ -1,10 +1,12 @@
-import { AccountsControllerState } from '@metamask/accounts-controller';
+import {
+  AccountsControllerMessenger,
+  AccountsControllerState,
+} from '@metamask/accounts-controller';
 import { ExtendedControllerMessenger } from '../../../ExtendedControllerMessenger';
 import {
   createAccountsController,
   defaultAccountsControllerState,
 } from './utils';
-import { ControllerMessenger } from '../../';
 import { withScope } from '@sentry/react-native';
 import { AGREED, METRICS_OPT_IN } from '../../../../constants/storage';
 import StorageWrapper from '../../../../store/storage-wrapper';
@@ -16,7 +18,24 @@ const mockedWithScope = jest.mocked(withScope);
 
 describe('accountControllersUtils', () => {
   describe('createAccountsController', () => {
+    let accountsControllerMessenger: AccountsControllerMessenger;
+
     beforeEach(() => {
+      const globalMessenger = new ExtendedControllerMessenger();
+      accountsControllerMessenger = globalMessenger.getRestricted({
+        name: 'AccountsController',
+        allowedEvents: [
+          'SnapController:stateChange',
+          'KeyringController:accountRemoved',
+          'KeyringController:stateChange',
+        ],
+        allowedActions: [
+          'KeyringController:getAccounts',
+          'KeyringController:getKeyringsByType',
+          'KeyringController:getKeyringForAccount',
+        ],
+      });
+      // Mock required for Logger
       StorageWrapper.getItem = jest.fn((key: string) => {
         switch (key) {
           case METRICS_OPT_IN:
@@ -32,14 +51,12 @@ describe('accountControllersUtils', () => {
     });
 
     it('AccountsController state should be default state when no initial state is passed in', () => {
-      const controllerMessenger = new ExtendedControllerMessenger();
       const accountsController = createAccountsController({
-        messenger: controllerMessenger,
+        messenger: accountsControllerMessenger,
       });
       expect(accountsController.state).toEqual(defaultAccountsControllerState);
     });
     it('AccountsController state should be initial state when initial state is passed in', () => {
-      const controllerMessenger = new ExtendedControllerMessenger();
       const initialAccountsControllerState: AccountsControllerState = {
         internalAccounts: {
           accounts: {},
@@ -47,27 +64,28 @@ describe('accountControllersUtils', () => {
         },
       };
       const accountsController = createAccountsController({
-        messenger: controllerMessenger,
+        messenger: accountsControllerMessenger,
         initialState: initialAccountsControllerState,
       });
       expect(accountsController.state).toEqual(initialAccountsControllerState);
     });
     it('AccountsController name should be AccountsController', () => {
-      const controllerMessenger = new ExtendedControllerMessenger();
       const accountsControllerName = 'AccountsController';
       const accountsController = createAccountsController({
-        messenger: controllerMessenger,
+        messenger: accountsControllerMessenger,
       });
       expect(accountsController.name).toEqual(accountsControllerName);
     });
-    it('should catch error when controller fails to initialize', async () => {
-      const controllerMessenger =
-        'controllerMessenger' as unknown as ControllerMessenger;
-      const accountsController = await createAccountsController({
-        messenger: controllerMessenger,
-      });
+    it('should detect and log an error when controller fails to initialize', async () => {
+      const brokenAccountsControllerMessenger =
+        'controllerMessenger' as unknown as AccountsControllerMessenger;
+      await expect(() =>
+        createAccountsController({
+          messenger: brokenAccountsControllerMessenger,
+        }),
+      ).toThrow();
+
       expect(mockedWithScope).toHaveBeenCalledTimes(1);
-      expect(accountsController).toEqual({});
     });
   });
 });
diff --git a/app/core/Engine/controllers/AccountsController/utils.ts b/app/core/Engine/controllers/accounts/utils.ts
similarity index 57%
rename from app/core/Engine/controllers/AccountsController/utils.ts
rename to app/core/Engine/controllers/accounts/utils.ts
index 44325a3bd65..881e86e43ef 100644
--- a/app/core/Engine/controllers/AccountsController/utils.ts
+++ b/app/core/Engine/controllers/accounts/utils.ts
@@ -3,7 +3,6 @@ import {
   AccountsControllerMessenger,
   AccountsControllerState,
 } from '@metamask/accounts-controller';
-import { ControllerMessenger } from '../../types';
 import Logger from '../../../../util/Logger';
 
 // Default AccountsControllerState
@@ -25,36 +24,20 @@ export const createAccountsController = ({
   messenger,
   initialState,
 }: {
-  messenger: ControllerMessenger;
+  messenger: AccountsControllerMessenger;
   initialState?: AccountsControllerState;
 }): AccountsController => {
-  let accountsController = {} as AccountsController;
-
   try {
-    const accountsControllerMessenger: AccountsControllerMessenger =
-      messenger.getRestricted({
-        name: 'AccountsController',
-        allowedEvents: [
-          'SnapController:stateChange',
-          'KeyringController:accountRemoved',
-          'KeyringController:stateChange',
-        ],
-        allowedActions: [
-          'KeyringController:getAccounts',
-          'KeyringController:getKeyringsByType',
-          'KeyringController:getKeyringForAccount',
-        ],
-      });
-
-    accountsController = new AccountsController({
-      messenger: accountsControllerMessenger,
+    const accountsController = new AccountsController({
+      messenger,
       state: initialState ?? defaultAccountsControllerState,
     });
+    return accountsController;
   } catch (error) {
     // Report error while initializing AccountsController
-    // TODO: Direct to vault recovery to reset controller states
     Logger.error(error as Error, 'Failed to initialize AccountsController');
-  }
 
-  return accountsController;
+    // TODO: Direct to vault recovery to reset controller states
+    throw error;
+  }
 };