The UK Government has last week decided to pursue an AML supervision model of having a Single Professional Services Supervisor (SPSS). The date from which the change will be implemented has not yet been announced.
It intends to appoint the Financial Conduct Authority (FCA) to carry out the new supervisory functions as part of its remit and will be tasked with working with the professional services sector, other regulators, and law enforcement agencies to improve the UK’s defences against money laundering.
How the FCA will carry out these functions is yet to be worked out. They currently regulate 17,000 entities and this new responsibility will add another 60,000 entities (according to estimates by the Financial Times – link may require a subscription) to their stable of supervised entities.
The supervised firms which will switch regulator to the FCA include Legal Service Providers (LSPs), Accountancy Service Providers (ASPs), and Trust and Company Service Providers (TCSPs). This means that all firms currently supervised for AML/CTF matters by a PBS, and all ASPs and TCSPs supervised by HMRC (including High Value Goods Dealers) will be supervised by the FCA.
This change will obviously impact accountancy firms in Northern Ireland, but will the Irish Government decide to do something similar in the Republic of Ireland? There are already (as in the UK at present) multiple AML regulators of professional service firms along with the Department of Justice and the Central Bank, among others. Watch this space for future developments.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
- Our latest CPD Webinar on The Main Changes in Irish GAAP (recorded July 2024)
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
