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AML - the essentials: June 2019

This issue of our Anti-Money Laundering update includes new crypto-asset guidance, new helpsheets and highlights the Government’s consultation on corporate transparency and register reform.

Regulatory updates

Transposing the Fifth Money Laundering Directive

ICAEW has responded to HM Treasury’s consultation on the transposition of the Fifth Money Laundering Directive (5MLD).

The Fifth Money Laundering Directive makes amendments to the Fourth Money Laundering Directive on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing. These amendments and new provisions will further strengthen transparency and the existing preventative framework, whilst ensuring the UK adheres to international standards set by the Financial Action Task Force.

The government is keen to ensure that the UK’s anti-money laundering and counter terrorist financing regime effectively deters money laundering and terrorist financing activity, whilst being proportionate and managing burdens on businesses.

Consultation on corporate transparency and register reform

The Government is consulting on new proposals to enhance the role of Companies House, increase the transparency of UK corporate entities and help combat economic crime.

The reforms cover:

  • transparency of who is setting up, managing and controlling companies;
  • accuracy and usability of data on the companies register;
  • protecting personal information on the register;
  • ensuring compliance, sharing intelligence; and
  • other measures to deter abuse of corporate entities.

The deadline for submissions is 5 August 2019.

Revised sanctions for AML breaches

The Guidance on Sanctions has been updated to include revised sanctions for AML breaches which aim to deter money laundering by ICAEW supervised firms. The new Guidance comes into effect on 1 July 2019.

Government responds to Economic Crime report

The Treasury Select Committee has published the Government’s response to the Committee’s report on Economic Crime.

The Government intends to consider both the recommendations made in the Financial Action Task Force’s 2018 report and those in the Treasury Select Committee report more fully through an Economic Crime Plan which is being delivered in conjunction with the private sector and is due to be published in July 2019.

Whistleblowing – contact ICAEW confidentially

If you come across an accountancy service provider (ASP) or trust and company service provider (TCSP) that does not appear to be regulated under the Money Laundering Regulations 2017 or appears to be ignoring the regulations, and you want to report it confidentiality, you can contact ICAEW.

Anti-money laundering resources

Crypto-assets – anti-money laundering guidance for accountants

An introduction to crypto-assets for accountants, including an explanation of how accountants may encounter them, the associated money-laundering risks and the issues that should be considered during risk assessments.

AML helpsheets

ICAEW has published five helpsheets to assist new ICAEW practitioners in complying with Anti-Money Laundering (AML) legislation and guidance:

  • Anti-money laundering for new practitioners
  • Anti-money laundering client due diligence
  • Anti-money laundering tipping off
  • Supervision by ICAEW for money laundering
  • Suspicious activity reports (SARs)

Practice Assurance Monitoring 2019

Maintain high standards: examine the most common failings uncovered during practice assurance reviews. This year's report includes a focus on AML, the GDPR and gifts and hospitality procedures. This year’s report is available as a downloadable pdf or you can also watch our recent webinar where members of our Quality Assurance team talk through the report.

New and useful resources