AIA has published its professional body supervisor report, which explains work carried out to ensure accountants prevent criminals from using their services to launder money.
AIA supervises its practising members for the purposes of the United Kingdom Money Laundering Regulations 2017 (as amended), where AIA is listed in schedule 1 as an approved supervisory body. In the Republic of Ireland AIA is a designated body under the Criminal Justice (Money Laundering and Terrorist Financing) Act. This work is overseen by HM Treasury, the Office for Professional Body AML Supervision (OPBAS) and the Republic of Ireland Departments of Finance and Justice.
AIA’s strategy is to provide robust anti-money laundering supervision through a risk-based approach. A risk-based approach requires assessment of risks and targeting resources to the areas or products that are most likely to be used to launder money. AIA also offers support to members through education, guidance, training, compliance checklists and templates.
The report covers:
- Our role in tackling money laundering and terrorist financing
- Firms and individuals in scope of the regulations
- Monitoring and supervision activity
- Reporting suspicious activity
- Whistleblowing and AML disclosures
- Emerging risks
- Upcoming areas of focus and supervisory activity
At the time of publication of this report the UK government has recently announced the outcome of its consultation into reform of the AML supervision framework. AIA is disappointed by the outcome of this consultation outlining the UK government’s intention to create a Single Professional Services Supervisor for AML and continues to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight. This shift risks significantly weakening the UK’s efforts to tackle economic crime.
Professional bodies play a critical role in maintaining high standards, ensuring accountability, and fostering a culture of compliance within the accountancy sector. Their deep understanding of the profession and established mechanisms for supervision are essential components of robust and effective regulation. Transferring supervision to a SPSS risks losing improvements made by professional body supervisors working in partnership with the Office for Professional Body Supervision (OPBAS).
Although the timeline for implementation of this change is unclear due to the requirement to introduce primary legislation and make transitional arrangements, accountancy sector professional body supervisors remain an essential line of defence against illicit finance and economic crime.
George Josephakis, Chair, AIA Regulatory Oversight Committee, said: “This annual report of AIA’s AML supervisory activity demonstrates how we meet our regulatory requirements, combat economic crime, and support our members in fulfilling their obligations under the Money Laundering Regulations. AIA continues to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight. We reaffirm our clear commitment to working in the public interest and supporting members in their critical role preventing money laundering.”
David Potts, Director of Policy & Regulation, said: “As a Professional Body Supervisor, AIA is dedicated to both enforcing compliance and educating members on their AML responsibilities; AIA understands its key role in preventing economic crime and contributing to a robust approach to AML safeguards. The information presented in this report highlights our regulatory efforts and the effectiveness of our AML monitoring and supervision activities.”
AIA continues to believe strongly that moving away from professional body supervision of accountancy firms will not lead to more effective oversight.
