Responsibilities and obligations of an ICAEW member firm

Regulatory framework

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR17) came into force on 26 June 2017. Since then, HM Treasury has issued a number of statutory instruments to update the regulations for:

• The Money Laundering and Terrorist Financing (Amendment) Regulations 2023 have been made and are effective from the 10th January 2024. These changes, empowered by the Sanctions and Anti-Money Laundering Act 2018, refine customer checks for politically exposed persons (PEPs).
  • View the statutory instrument 
• Expands person of significant control discrepancy reporting to cover the ongoing business relationship and the Register of Overseas Entities (21 July 2022)
  • July 2022 Statutory Instrument to amend the Money Laundering Regulations
• The Trust Registration (15 September 2020)
  • Find out about the key changes
• Changes required by the firth money laundering directive (5MLD) (10 January 2020);
  • View the key changes under 5MLD

AML guidance for the accountancy sector

The Consultative Committee of Accountancy Bodies (CCAB) has published the latest version of its Anti-Money Laundering Guidance for the Accountancy Sector, together with the Tax Appendix and the Insolvency Appendix, following the Treasury’s approval of all three documents.

The guidance was initially updated in September 2020 to reflect amendments made to the UK Money Laundering and Terrorist Financing Regulations 2017 ('the 2017 Regulations'). These regulations were amended in January 2020 to reflect the Fifth Money Laundering Directive (5MLD) from the EU.

The main changes from the draft guidance are:

• Timeframe to report PSC discrepancies reduced to within 15 working days (previously 30 days).
• Strengthening from ‘should’ to ‘must’ for a short list of requirements.
• Update to the legislation referenced in the guidance following the UK leaving the EU.
• Clarified wording around enhanced due diligence for an occasional transaction where there are connections to a high-risk third country.

• Read more about changes to the guidance following HM Treasury’s review and approval. This includes a reminder of the changes made following the implementation of the Fifth Anti-money Laundering Directive
• Further information for insolvency practitioners is available here

The CCAB also publishes a separate appendix for:

• those providing tax services in the UK; and
• insolvency practitioners

Reporting discrepancies in the People with Significant Control Register 

• This guidance outlines a member’s responsibilities

What is required of an ICAEW anti-money laundering (AML) supervised firm?

• Find out more on our regulation pages

AML Policies and Procedures template

This template is targeted at new firms, sole practitioners and smaller firms who are looking for guidance on how to structure their AML policy and procedure documentation.

Anti-money laundering for smaller practices

Technical helpsheet issued to help new ICAEW practitioners to comply with Anti-Money Laundering (AML) legislation and guidance.

• Find out more

How can ICAEW firms check they comply?

ICAEW has published a compliance review checklist for firms to use to regular assess their compliance with MLR17 and associated legislation.

• Find out more

2021/2022 AML supervision report

Read our 2021/22 Anti-money Laundering Supervision Report for the results of our monitoring visits, the outcomes of those visits and enforcement action taken. This report also summarises all of our anti-money laundering supervisory activity during the period. Firms should pay particular attention to the most common issues we see section which includes links to resources to support compliance.

• Read more

AML service

ICAEW has teamed up with SWAT UK to create a package of online systems and insightful online training seminars tailored to meet your requirements.

• Find out more

Criminal record checks

Under The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR17) ICAEW must approve all beneficial owners, officers and managers (BOOMs) in our supervised firms.

• Find out more about the approval process

HMRC TCSP register

Under Regulation 54 of MLR17, HMRC must maintain a register of all relevant persons who are trust or company service providers (TCSPs) that are not already registered with FCA.

• Find out more about which firms can and cannot perform TCSP work and the HMRC TCSP register

UK sanctions and their role within the AML framework

The UK Sanctions Regime has been developed over the same timeframe as the AML regime and has many similar objectives and characteristics but there are also significant differences.

• Find out more about the UK sanctions regime
• Sanctions and AML compared and contrasted
• OFSI guidance on licenses
• Use ICAEW’s client screening service to check if your clients are on UK sanctions lists
• Guidance on the UK's ban of the provision of accountancy services to Russia
• Find out what the government’s ban on auditing services to Russia means for your clients

Criminal Finances Act – corporate offence to prevent facilitation of tax evasion

The Criminal Finances Act 2017 targets corruption, money laundering and tax evasion by aiming to recoup criminal assets and is part of the government’s strategic approach to reducing financial crime.

The Act also introduces two new criminal offenses in respect of the facilitation of tax evasion. The new offenses will be committed where a corporate entity or partnership fails to prevent an associated person from criminally facilitating the evasion of tax, whether the tax evaded is owed in the UK or in a foreign country where there is a connection to the UK.

• Read guidance on how firms can protect themselves against the failure to prevent tax evasion
• Webinar: Jennifer Haslett - Head of corporate crime and international engagement at HMRC and David Stevens - Integrity and Law Manager at ICAEW discuss the criminal finances bill