HM Treasury has confirmed plans for the Financial Conduct Authority (FCA) to become the single anti-money laundering supervisor for accountancy firms, replacing the current professional body supervision model.
While the changes represent a significant shift for the profession, implementation is expected to take place over several years and no immediate action is required from ICB members.
The Government has confirmed plans to reform the UK's anti-money laundering (AML) supervision regime, with the Financial Conduct Authority (FCA) set to become the single AML supervisor for accountancy firms, legal services firms and trust and company service providers.
The announcement follows the publication of HM Treasury's response to its consultation on AML/CTF supervision reform. Under the proposals, the FCA will assume responsibility for AML supervision currently carried out by professional body supervisors, including ICB, creating a single supervisory framework across professional services.
The Government says the move is intended to deliver a more consistent, risk-based approach to supervision while maintaining proportionality for smaller firms. The FCA will maintain a single public register of supervised firms and introduce a common framework for assessing whether firms and key individuals are fit and proper to undertake regulated activities.
Importantly, the AML regulations themselves are not changing. Members' obligations around client due diligence, risk assessments, record keeping, ongoing monitoring and suspicious activity reporting remain exactly the same.
Significant details are still to be determined, including implementation timescales, transitional arrangements and future fee structures. The Government has indicated that the transition will be carefully managed over a number of years, with further consultation and engagement taking place before the new regime comes into force.
Earlier this week, ICB's senior compliance and professional standards team met with FCA representatives to discuss the structure of the bookkeeping profession, the profile of ICB practices and the realities faced by the many sole practitioners and small firms that make up the Institute's membership.
Garry Carter, Director of Compliance and Co-Founder of ICB, said:
"This announcement represents a significant change to the AML supervisory landscape for ICB members and the wider bookkeeping profession. However, it is important to recognise that the AML regulations themselves are not changing and there is no action required from firms at this stage.
"Earlier this week, ICB's senior compliance and professional standards team spent a full day meeting with FCA representatives to discuss the structure of the bookkeeping profession and the realities faced by the many sole practitioners and small practices that make up our membership.
"ICB will continue to work closely with policymakers and regulators throughout the transition process. We will keep advising and supporting ICB bookkeepers as further details emerge, providing clear guidance at every stage and helping members understand what any future changes mean for their practices."
ICB will continue to engage with HM Treasury, the FCA and other stakeholders as implementation plans develop. Members can expect regular updates as further information becomes available.
For now, members should continue to comply with their existing AML obligations and maintain the high professional standards that underpin confidence in the bookkeeping profession.