A single state body could take over from legal regulators the job of supervising anti-money laundering activity by solicitors under proposals published by the government. 

In a much-awaited consultation paper, Reform of the Anti-Money Laundering and Counter Terrorism Financing Supervisory Regime, HM Treasury presents four options for tackling what it calls 'significant weaknesses'. They are:  

  • Retaining the existing regime but with enhanced powers for the Office of Professional Body Anti-money laundering Supervision (OPBAS). Any additional powers granted to OPBAS ‘ought to be coupled with additional accountability mechanisms’. 
  • Consolidation of regulators into one accountancy sector supervisor and one legal sector supervisor. The legal sector supervisor could have a UK-wide remit, or one legal supervisor could be set up for each UK jurisdiction.  
  • A single body to supervise all legal and accountancy sector firms. It could also supervise some or all of the wider sectors currently supervised by HMRC.
  • A single public body to undertake all AML and terrorism finance supervision in the UK, including in the financial services sector. 

Responsibility for monitoring anti-money laundering activity is currently spread between three statutory supervisors and 22 'professional body supervisors', which include the Solicitors Regulation Authority. 

According to the paper, a 'single professional services supervisor' would take responsibility for all legal and accountancy sector firms. It would 'most likely' be a public body, accountable to parliament. 'Furthermore, a public body created for the purpose of supervision may be more able than private bodies to expand its remit should there be later changes to sectors in scope of the money laundering regulations', the paper states. It notes that existing professional regulators would continue to supervise firms for other purposes. 'It would be important to mitigate the impact of this dual regulation,' the paper concedes. 

The consultation closes on 30 September. Responses will form the basis on which HM Treasury can reach a policy decision 'no later than the end of Q1 2024'.

 

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