Anti-money Laundering: A New Battlefield For Accountants?

Posted by Capium on May 30, 2019 4:08:16 PM

Anti-money laundering (AML) checks have long been part-and-parcel of the profession, but there are signs on the horizon that AML compliance will be a battlefield for accountants.

In 2017, the UK brought in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations (known as MLR 2017 for short).

These rules implemented the EU’s 4th Directive on Money Laundering and did away with the Money Laundering Regulations 2007 (MLR 2007) and the Transfer of Funds (Information on the Payer) Regulations 2007 which were previously in force.

Okay, nothing new here - but a few recent tremors have many experts predicting an AML crackdown is on its way. Most notably, the first report from the Office of Professional Body Anti Money Laundering Supervision (OPBAS) harshly criticised the accounting bodies for lack of enforcement action and poor AML record keeping.

According to OPBAS’s figures, only half of the professional bodies issued fines for AML infractions last year, with most preferred the carrot to the stick, offering support and guidance to members to improve their AML compliance rather than issue penalties.

As OPBAS cranks up the pressure on professional supervisory bodies, it’s likely this will cascade down to accountants. The until now relatively light touch approach to AML supervision will be at an end, and practitioners face fines for non-compliance.

Under a more robust AML regime, accountants will need to invest in technology that keeps pace with their regulatory requirements. Done manually, checks are onerous, that’s why Capium’s Practice Management module now has a built-in AML checklist to assist you in remaining compliant.

Once a client is a set-up, AML information is safely stored and accessible. In your detailed client view, you can access client business information, social contacts, PAYE details, company directors and the AML Checklist in one place.

In other words, your legal AML duties are built into your practice workflow. And if enforcement cranks up, Capium users can easily demonstrate their compliance. That’s technology being truly useful.

Capium makes best practice simple. It’s a pure cloud platform built with the accountant in mind, allowing you to check all of the regulatory boxes required so you can get on with serving your customers.

Topics: Tips and Advice, Updates, business, Online Accounting, Tax guide small practice, Whitepaper

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