In its fifth report, the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) has found that while most Professional Body Supervisors (PBS) are complying with money laundering regulations, how they supervise is still not consistently effective.
OPBAS is housed within the FCA and is responsible for supervising 25 PBSs for anti-money laundering purposes in the legal and accountancy sector.
OPBAS found[2] none of the PBSs assessed were fully effective in all areas. For example, the report found weaknesses in how PBSs were using enforcement powers and tools to supervise members, with the number and value of fines issued declining on the previous year.
Proactive information and intelligence sharing with regulators and law enforcement was also inconsistent, with some PBSs improving but limited sharing elsewhere hampering efforts to make a real dent in the flow of illicit funds in the UK.
OPBAS has used an increasing range of supervisory tools to hold PBSs accountable. This includes using its powers to direct two PBSs to take action to remedy money laundering shortfalls.
In January 2023, OPBAS set out additional guidance[3] on the outcomes PBSs need to achieve to enhance their work. It continues to assess PBSs against this revised sourcebook, prioritising its supervisory oversight on areas of greatest weaknesses.
Andrea Bowe, Director, Specialists at FCA, said:
'The FCA is committed to playing a leading role in reducing and preventing financial crime. Through OPBAS, we have intervened to tackle failings where we have found them.
'However, we are still not seeing the consistent, effective improvement we need.'
Tackling financial crime is a key priority for the FCA. OPBAS will focus on improving the consistency and effectiveness of PBSs as part of this work.