The ICAEW has published its latest report urging firms to improve their anti-money laundering (AML) practices.
- After conducting 1,088 monitoring visits, ICAEW found 80.7% compliance among the firms it supervises.
- 39 firms faced sanctions and fines totaling £92,025 for inadequate AML procedures.
- The ICAEW has strengthened its supervision, focusing on the effectiveness of AML policies.
- A call for government feedback on the future of AML supervision was made by ICAEW’s chief officer.
In its recent report, the Institute of Chartered Accountants in England and Wales (ICAEW) highlighted the need for firms to bolster their anti-money laundering (AML) frameworks. The organisation conducted 1,088 monitoring visits in the past year, revealing that although 80.7% of these firms were considered compliant or generally compliant, there remains a pressing need for better practices.
The investigations led to significant enforcement actions, with 39 firms receiving sanctions and fines amounting to £92,025 due to insufficient AML measures. This development underscores ICAEW’s determination to uphold high standards in the fight against money laundering activities.
ICAEW has revised its approach to AML supervision, shifting its emphasis from mere technical compliance to examining the effectiveness of each firm’s policies and procedures. This proactive adjustment aims to enhance compliance levels by assessing the real-world applicability and execution of AML protocols, leading to sustained improvements in this domain.
Duncan Wiggetts, ICAEW chief officer of Professional Standards, asserted the importance of raising the bar for what qualifies as compliant. He highlighted, “As this report shows, we spend a lot of time and effort helping the firms we supervise to understand how they can avoid becoming unwitting professional enablers of money laundering.” This reinforces ICAEW’s commitment to maintaining stringent standards and taking decisive action when these are not met.
The report also contained a compelling appeal to the government to provide the overdue feedback statement on the future of AML supervision. This call from ICAEW aims to ensure that professional bodies continue to play a critical role in enhancing supervisory practices and maintaining robust defences against money laundering.
The ICAEW’s report serves as a timely reminder of the ongoing importance of stringent AML practices within the financial sector.
