ICB chief executive, Garry Carter, raised his concern at the latest meeting of the Anti Money Laundering Accountants Affinity Group in January that bookkeepers and accountants who had been expelled from membership of a professional body could register for money laundering supervision with HMRC without having to complete any form of fit and proper test. He also suggested that accepting people who did not have any formal qualification or proof of competence was detrimental to the whole profession and was not in the spirit of the Money Laundering Regulations.
The comments were supported by other supervisory bodies but, speaking on behalf of HMRC, Andy Watson expressed his desire to avoid repeated discussions on this topic while HMRC is obliged under the legislation to regulate those unable to gain supervision with one of the other supervisory bodies.
Mr Carter then asked Mr Watson how Accountancy Service Providers (ASPs) registering with HMRC would be assessed for risk and what level of audits were currently being carried out. In response, Mr Watson said that new registrants who had previously been with another supervisory body, particularly if expelled, would be treated as high risk. However, he said that there are currently insufficient resources to carry out extensive audits. HMRC procedure in the short-term would involve concentrating on the high-risk sectors for which it is also supervisor, such as Trust & Company Service Providers (TCSPs) and High Value Dealers (HVDs).
The Accountants Affinity Group group went on to discuss the action that should be taken against members who were late in paying their annual licence fees or who defaulted. It was decided that the onus was on the supervisor to take disciplinary action or impose fines to bring members into line. The supervisors were reminded that there was a legal obligation upon them to collect the fees and that failure to take appropriate action could be a dereliction of their duty. It was agreed to raise this matter with HM Treasury.
The Accountants Affinity Group then joined supervisory bodies from other sectors to take part in the most recent event in a programme of quarterly meetings of the Anti Money Laundering Supervisors’ Forum (AMLSF). The AMLSF is attended by HM Treasury and the Serious Organised Crime Agency and is currently chaired by Stephen Wilmot who is head of compliance with the Solicitors’ Regulation Authority. Most sectors hold their own affinity group meeting in the morning prior to the forum, and use the day to discuss the implementation of the regulations and best practice .