AML policies, controls and procedures: ask the…
The SRA has warned of the risks posed by “off-the-shelf” policies, controls and procedures (PCPs). Emma Williams sets out what questions to ask to get your PCPs right first time.
A 2022 review by HM Treasury found structural inconsistencies and weaknesses with the UK’s AML and CTF supervision regime.
The UK government aims to reform the regime to increase its effectiveness and improve coordination across the system.
Under the current regime, there are:
HM Treasury proposes the following four models:
The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) would be given enhanced powers to increase the effectiveness of supervision by the professional body supervisors.
This would strengthen OPBAS’s powers without any changes in the number or type of supervisors.
This model would be the most immediately feasible, requiring no structural changes.
This model would result in the biggest structural changes determining which professional body supervisor would keep supervision capabilities.
Likely outcomes would see either two or six professional body supervisors retaining responsibility for supervision.
There could be either:
This model would keep the current system in which private bodies supervise firms but reduce inconsistency and complexity by ensuring only the highest performing supervisors remained.
This model would see a single body supervise all legal and accountancy sector firms.
It may also supervise some or all the wider sectors currently supervised by HMRC.
While the existing professional body supervisors would no longer be responsible for AML/CTF supervision, they could continue to supervise firms for other purposes.
Under this model, all AML/CTF supervision in the UK would be undertaken by a single public body.
The major difference between this and the last model is the Financial Conduct Authority and Gambling Commission would also stop supervising firms for AML/CTF compliance.
HMRC, the FCA, the GC and professional body supervisors would continue to supervise firms for general regulatory conduct.
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The Money Laundering Task Force is reviewing the proposals and will respond to the government to represent you and your best interests.
The consultation closes on 30 September 2023.
HM Treasury aims to decide which model to adopt in early 2024.
If you would like to share your views to inform our response, email Rick Kent.