The UK’s anti-money laundering (AML) watchdog has identified weaknesses in the way professional body supervisors police companies in the legal and accountancy sectors.
In a newly released report, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) said supervisors of professional services companies are operating more effectively than at any point since the organisation was established in 2018.
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However, it said there remains “room for improvement”, with enforcement in particular still falling short among some professional body supervisors (PBSs).
OPBAS, which operates within the Financial Conduct Authority (FCA), oversees 25 PBSs that monitor AML compliance across the legal and accountancy sectors.
The report found that, overall, PBSs broadly meet OPBAS expectations on compliance. However, it highlighted that some bodies still lag behind peers in pursuing firm action over rule breaches.
The watchdog added that supervision could be strengthened.
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By GlobalDataOPBAS also repeated concerns about structural conflicts faced by certain PBSs that function both as membership associations and regulatory authorities.
According to the watchdog, this dual function can complicate decision-making when enforcement measures against member companies are required.
FCA specialists director Mark Francis said: “ Fighting financial crime is a priority for the FCA. In recent years, OPBAS has driven progress in the way money laundering is tackled in the legal and accountancy sectors, but improvements are still required.”
Since its launch, OPBAS has widened the tools it uses to push for higher standards.
Last year, it issued its first enforcement action against a PBS for failing to meet obligations under the Money Laundering Regulations.
The report comes as the UK prepares to significantly reshape AML oversight in professional services.
Last year, the government decided that the FCA will assume responsibility for AML and counter-terrorist financing supervision for the accountancy and legal professions.
The move is intended to simplify the existing patchwork of supervisors, create more uniform oversight and reinforce efforts to detect and disrupt criminal activity.
