AccountigWEB Review of AML from the Supervisor’s Perspective

There are common myths regarding AML compliance including the belief that supervisory bodies are focused on catching and fining members. However, the reality is different and these bodies are dedicated to supporting accountants and bookkeepers by offering resources and guidance to make sure practices are compliant.

Firmcheck recently hosted a session on AML from the supervisor’s perspective as a part of their AML summer school. The panel included Wesley Walsh, head of AML at the Association of Chartered Certified Accountants; Garry Carter, co-founder and president of the Institute of Certified Bookkeepers; and Jody Newman, head of compliance and professional standards at the Institute of Accountants and Bookkeepers.

Members shouldn’t fear approaching their bodies

The key message that the AML compliance leaders wanted to convey was one of support. They emphasised that their role is to assist, not to penalise, and encouraged members to engage with them.

He added, “If people are genuinely trying to do the right thing then we are there to support them.”

This was further agreed by Carter who urged others to understand that they’re not there to catch people out but to prove that their accountants and bookkeepers are good at what they do.

“We have 15 years of experience seeing what goes wrong and what can go wrong. We appreciate hiccups that can happen and we are there to advise first and foremost,” he said.

Another common misconception that was mentioned was AML audits being an excuse to charge members extra fees. In reality, the panel explained that these audits have a much more important purpose that’s not about making money.

Walsh said that they want to find firms that are compliant and not the other way around. “Part of our narrative when we talk to government and law enforcement, is to show that accountants and bookkeepers are doing the right thing – they want to be compliant and they understand the requirements. Audits are important evidence to support those conversations.”

Carter emphasised that if they’re conducting a full in-person inspection then it’s because they believe that something might be wrong. He said, “There is a whole process before an inspection. We start with an intelligence check. We ring up and say ‘this doesn’t look right’ or ‘you appear to be having a problem’ or ‘we’ve noticed this, can you explain it?’ and if it’s explained to our satisfaction, that’s the end of that particular cycle.

“Audits are certainly not there to raise money. We spend more on audits than what we get back and it’s never been seen as a way of gaining revenue. We look at the person, the firm that they’re running and we try to mitigate as much as we can against giving them any form of fine,” Carter continued.

The panel urged that they’re not looking to find members who aren’t compliant but looking to encourage compliance.

Commitment to supporting members

Newman, Carter and Walsh recognised that smaller firms struggle with AML compliance due to limited resources. They spoke about their commitment to providing support and resources to help these firms manage regulations.

“It’s our job to see how we can guide our particular subset of members to proportionately understand how they need to comply with the regulations and unlock that understanding for them so they don’t have to wade through the legal text of the regulations,” Newman said.

He explained, “We try to react to what we are seeing to make sure the information we provide is relevant and engaging, and addresses the issues at hand.”

Carter added, “As professional bodies, we need to know our audience and once we know our audience we can tailor the rules to suit them. Some of the stuff is so over the top it’s frightening and if it’s frightening people ignore it.”

Each supervisory body had similar resources to offer including factsheets, guidance documents, webinars and AML systems to help their members.

“We just want to get the message out there to help people understand and help others down the line,” Walsh said.

To find out more listen to the full session and or attend Firmcheck’s AML summer school.

Accountigweb review of aml from the supervisor’s perspective