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AML - the essentials: September 2018

The tenth issue of 'Anti-money laundering - the essentials' covers: HMRC’s TCSP register, criminal record checks, the Fifth Anti-money laundering directive and contains useful resources from the FCA and NCA.

Regulatory updates


Have you obtained your criminal record checks?

Since 26 June 2018, all our supervised firms must take reasonable care to ensure no-one is appointed, or continues to act, as a beneficial owner, officer or manager (BOOM) without ICAEW’s approval. ICAEW can only approve a BOOM if that individual has no relevant unspent criminal convictions and so, to prove that we can approve a BOOM, we require all BOOMs to obtain criminal record check certificates. We will need to see copies of these at your next Practice Assurance visit.


HMRC’s TCSP register – is your firm on it?

Under Regulation 54 of MLR17, HMRC must maintain a register of all firms that provide trust or company services. If you perform TCSP work when not on the register, you may be subject to disciplinary action. ICAEW has notified HMRC of all the firms it supervises that perform TCSP work based on the information provided to us in the ICAEW annual return. If you perform TCSP work, you should check that you have told us in your most recent annual return.


OPBAS levy

The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) levies an annual charge on all professional body supervisors (which includes ICAEW), based on the number of beneficial owners, officers and managers in the firms registered with us for AML supervision. ICAEW is passing on this charge to UK practicing certificate holders, to cover additional regulatory work required by these new regulations. OPBAS has not yet finalised the charge for 2019 so we have estimated the cost at £28 using the information provided in their consultation paper.

Anti-money laundering news


Fifth anti-money laundering directive

In May 2018 the EU Council approved the Fifth Anti-Money Laundering Directive, which has now been published. We expect this will be transposed into UK legislation in early 2020. The highlights include:

  • Extending AML requirements to virtual currency exchanges, wallet providers, and letting intermediaries where monthly rent is over 10,000 euros;
  • Updates to CDD provisions to reflect increasing use of electronic due diligence; and also documenting difficulties in the verification process where the senior managing official is a beneficial owner of the entity;
  • A responsibility when doing CDD to check that the client has filed beneficial ownership details with the registrar (i.e. Companies House) and report any discrepancies you identify.
  • Each member state will produce a list of public functions that would make someone a PEP.
  • All self-regulatory bodies (including ICAEW) will need to publish an annual report about their compliance monitoring and detected AML breaches.
  • Public bodes will be required to publish information on the AML risks they have identified, and what their response has been including the human and financial resources applied.


National Crime Agency Guidance on Defence Against Money Laundering requests

The National Crime Agency (‘NCA’) has published their first set of frequently asked questions about consent applications that can be made to continue with a transaction involving suspected criminal property. These FAQs give information on best practice when applying for a Defence Against Money Laundering, and guidance on when such an application is appropriate.


FCA resources on using new technology to support AML compliance

The FCA has shared a number of its resources on how the financial services industry can use new technologies to support AML compliance, particularly in the area of CDD.


Treasury Select Committee inquiry into economic crime

In May 2018, ICAEW submitted evidence to the Treasury Select Committee’s inquiry into economic crime.


HM Treasury’s annual Frozen Assets Review – launched 3 September 2018

HM Treasury launched its annual Frozen Assets Review on Monday 3 September 2018. As in previous years, all individuals, organisations and businesses holding frozen assets will have until Friday 13 October 2018 to report them via this form to the Treasury’s Office of Financial Sanctions Implementation (OFSI).


New Practice Assurance webinar

The Practice Assurance webinar has been refreshed to cover the latest developments in Anti-money laundering regulations (AMLR 17), GDPR and Designated Professional Body (Investment Business) as well as covering the four Practice Assurance standards.