ACCA raises concerns over FCA move for AML supervision

The Association of Chartered Certified Accountants (ACCA) has raised concerns implicit the UK Government’s planned changes to the anti-money laundering (AML) supervisory framework.

The accountancy assemblage said that determination are “significant weaknesses” successful the exemplary wherever AML compliance would determination distant from nonrecreational assemblage supervisors, including the ACCA, to the Financial Conduct Authority (FCA).

Under the changes, the FCA enactment arsenic the UK’s Single Professional Services Supervisor (SPSS).

The ACCA states that it volition enactment to enactment the exemplary the authorities prefers but argues that the alteration could summation vulnerability to economical crime.

It besides links the connection to imaginable antagonistic effects connected the accountancy sector’s development, noting the sector’s relation successful the government’s concern strategy and wider economical plans.

A further interest raised is that higher costs and added administrative load could pb immoderate companies to discontinue rank of nonrecreational bodies.

The ACCA suggests that, adjacent if practices stay taxable to FCA AML supervision, reduced nonrecreational competence checks and weaker ethical and regulatory oversight could lend to little standards and greater hazard of wrongdoing.

It besides warns of imaginable misunderstandings among businesses and individuals astir the FCA oversight for AML supervision.

The ACCA argues that the existent strategy benefits from supervision carried retired by organisations with elaborate assemblage knowledge, which it describes arsenic an important origin successful deterring economical crime.

It says this capableness would not transportation rapidly and could instrumentality years for immoderate caller supervisor to build.

The ACCA is asking the authorities to prosecute with UK accountancy organisations to trim uncertainty and forestall unclear areas successful the proposals.

ACCA AML and Operations caput Wesley Walsh said: “Under the SPSS model, ACCA firms volition look the imaginable of dual supervision and dual fees for AML supervision and their nonrecreational body.

“Also, the magnitude of clip it volition instrumentality to instrumentality a azygous AML supervisor could origin sizeable disruption successful supervision. In a challenging economical climate, these accrued costs to businesses, ample and small, cannot beryllium justified.”

"ACCA raises concerns implicit FCA determination for AML supervision" was primitively created and published by The Accountant, a GlobalData owned brand.

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