As accountants play a crucial role in combating economic crime, it is essential that our members take a diligent approach to their anti-money laundering (AML) responsibilities. To support this, we will introduce a revised AML Regulatory Actions Guidance document, effective from 7 April 2025.
The 2017 Money Laundering Regulations brought significant changes for professional service firms—including accountants, auditors, and insolvency practitioners—fundamentally shaping how client relationships should be managed throughout their lifecycle.
Since then, there has been growing scrutiny, both in the UK and globally, on the risks posed by economic crime and the role professional service firms play, whether knowingly or inadvertently. As an organisation committed to ethical leadership, ICAS and its supervised firms must take an active role in addressing these risks.
A More Robust Approach to AML Compliance
Our AML monitoring visits show that most supervised firms are compliant and take their obligations seriously. However, some firms are still not giving AML requirements the attention they demand. As a result, a stronger approach is now necessary.
The ICAS Authorisation Committee has approved changes to how AML non-compliance is addressed, as outlined in the revised AML Regulatory Actions Guidance. From 7 April 2025, two key changes will take effect:
- Tariffs – The guidance will introduce indicative regulatory penalties for eight categories of non-compliance, including failures in customer due diligence and firm-wide AML processes.
- Timing – AML non-compliance will be reviewed at the earliest possible opportunity following identification during a monitoring visit, ensuring a more efficient resolution process.
ICAS remains committed to a proportionate supervisory approach, providing support to help firms meet AML standards. Financial penalties will only be applied where firms have failed to address AML requirements, including instances where prior issues raised during monitoring visits have not been resolved.
Next Steps for Supervised Firms
We encourage all supervised firms to review the eight categories of non-compliance in the updated guidance and take any necessary action to ensure full compliance. Further insights from our AML monitoring visits can be found in our AML report, published in October 2024.
To support firms in meeting their AML obligations, ICAS will expand its AML resources, including articles, videos, and other educational materials.
For more information, please refer to the updated AML Regulatory Actions Guidance and take proactive steps to strengthen your compliance framework.
Info obtained here
