Earlier this year, ICB issued requests for information to practising members because of two requirements brought by the new Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR17)
1. The requirement, under Regulation 26, for ICB to approve all beneficial owners, officers and managers (BOOMs) of its supervised practices
We contacted members to inform them that we can only approve a BOOM if that individual has no relevant unspent criminal convictions and to request an up to date copy of their criminal record.
Any BOOM with relevant unspent convictions will be committing a criminal offence punishable by imprisonment of up to three years and / or a financial penalty and will be unable to continue to act as a BOOM.
2. The requirement, under Regulation 54, for HMRC to maintain a register of all relevant persons who are trust or company service providers (TCSPs) that are not already registered with the FCA
We contacted members to request their TCSP status and to inform them that practices can only provide TCSP work if they are on the register. HMRC have requested ICB notifies them of all supervised practices that perform TCSP work.
Any TCSP not on the register may be subject to disciplinary action.
In conclusion
On the whole, practices have responded to our information requests in a timely manner. There remains, however, a handful of practices who have yet to respond adequately. If you think this includes you please contact the ICB compliance team as a matter of urgency on 0203 405 4000 or by email to professional.standards@bookkeepers.org.uk
Any members who have not satisfied ICB requests for information about TCSPs or BOOMs, may be called to a disciplinary hearing in line with ICB's obligations to the FCA and under the terms of the Professional Conduct Regulations, in particular Regulation 19:
19. A member must at all times co-operate with his Institute and promptly attend to and respond to any communications from the Institute.
Background to the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), part of FCA
The Government has established OPBAS as part of a wider package of reforms to strengthen the AML supervisory regime in the United Kingdom.
The OPBAS Regulations 2018 came into effect on 18 January 2018 and give OPBAS duties and powers to ensure the professional body AML supervisors meet the standards required by the Money Laundering Regulations 2017 OPBAS is housed within the FCA and will facilitate collaboration and information sharing between the professional body AML supervisors, statutory supervisors, and law enforcement agencies.
OPBAS aims to improve consistency of professional body AML supervision in the accountancy and legal sectors, but will not directly supervise legal and accountancy firms.
