ICB has released its latest Annual AML Report. In this update, President and Co-Founder Garry Carter shares key findings, and advice for members on keeping on the right side of MLR.
An AML year of successes and vigilance
ICB has released the 2023/2024 Annual AML Report. The report shows a welcome reduction in the number of practices being sanctioned for AML breaches. This reflects a more concerted effort by practices to maintain constant due diligence on their clients but is not a signal to ease up. On the contrary, we must maintain this heightened vigilance against the risks and threats of money laundering and fraud. Bookkeepers hold a unique and significant place in the chain of sound financial management, as you see all transactions and are ideally positioned to identify not only errors but, more importantly, criminal intent.
AML Online
The AML Online platform is designed to assist everyone in staying up to date. It is not intended for occasional use but rather for thorough onboarding of new clients and regular updates as our understanding of your clients grows over time. It’s all about the old phrase, ‘Know Your Clients.’ That’s one of the major skills of bookkeepers – you see everything and thrive on having everything in its place.
AML Online facilitates constant monitoring of your clients and demonstrates to ICB, as your supervisor, that you are maintaining a vigilant approach and understanding risk. ICB aims to translate the risks covered by the National Risk Assessment (NRA) into practical guidance to which ICB members can relate. The NRA covers all supervised populations, including banks, financial institutions, solicitors, and of course, bookkeepers and accountants. ICB has the luxury of focusing specifically on bookkeepers.
Risk
Many of you may have attended one of my presentations on the three Rs of money laundering – Risk, Risk, and Risk. Bookkeepers need to understand, identify, and manage the risks they face. You should neither underestimate or overestimate these risks but focus on the highest risk areas. Everyone faces risk, and it's important that when something unusual happens that could be criminal, our members can identify it and know how to respond or seek guidance from ICB.
It should not be something that keeps you awake at night or takes up all your time; it should become second nature by using your unique ‘bookkeeper powers’ to spot irregularities and potential problems, and then address them.
It was great to see that attendance at the six-city Inspire Tour was almost back to pre-COVID numbers. During Thursday’s Virtual Summit you will get the opportunity to meet the AML team and we shall give you dates for a new series of MLR on Monday special live webinars, beginning with the UKFIU's in-depth guide to Suspicious Activity Reports (SARs).
Suspicious Activity Reports
Talking of SARs, the latest Sars in Action newsletter is available here.
Professional enablers
There is increasing evidence that some criminals are attempting to use professionals, such as bookkeepers, accountants and solicitors, to legitimise criminal activity by placing illegitimate funds into legitimate businesses. ICB has actual experience of members being unwittingly involved in enabling criminal activity. We need to be careful and question everything. Does a transaction look unusual or unexpected? Why is that transaction happening? Whare is the source of funds? Does it feel right?
The might be perfectly legitimate reasons why something unusual is happening but if the client cannot or will not provide a good explanation, that you can check out, you should talk to the ICB AML team. We might be able to allay your fears, or give you guidance on your next move.
TCSP U-Turn
HMRC have reviewed their guidance and clarified that being an agent under a 64-8 agreement does not make a practice a TCSP. We appreciate HMRC’s reconsideration of this matter and remain committed to ensuring our members have accurate, up-to-date guidance.
We understand that HMRC will be issuing more comprehensive guidance for TCSPs in the coming months, at which point we will notify you. In the meantime, if you want to check your TCSP status please get in touch with the AML Team and we'll be happy to help.
Publication of Sanctions
ICB is the only AML supervisory body not to have made public a list of practices sanctioned for MLR breaches. We have been mindful that for most members who have been sanctioned, the loss of their status as a Member of Good Standing, was actually of greater concern than the financial sanction itself. ICB was therefore always concerned that the ignominy of public naming and shaming could be unnecessarily punitive.
While the legislation says supervisors ‘should’ publish details, rather than ‘must’ publish details, ICB is now coming under pressure from OPBAS and the FCA to adopt what they are saying is ‘best practice’. A proposal to make ICB sanctions public was passed by the Main Board earlier this year, and will be actioned pending ongoing discussions. ICB will continue to take appropriate enforcement actions and consider when it is relevant to make such actions known publicly to maintain transparency and deter non-compliance.
We are here to help
Remember: The ICB Compliance team is here to support you. Whatever your query, please do contact us via aml@bookkeepers.org.uk .
