Statutory Regulations

Statutory Regulations

All individuals or practices offering bookkeeping, accounting or payroll services to the public are subject to the Money Laundering Regulations 2017.

Those who choose to practice without complying with these regulations risk financial penalties and/or prosecution therefore an understanding of these obligations is important if you considering starting up your own bookkeeping business.

What is money laundering?

Money laundering is the process where the proceeds of crime (or funds used in terrorist activities) are made to appear legitimate.

Accountants and bookkeepers can unwittingly be used as ‘tools’ in the laundering process. The Money Laundering Regulations came into place to ensure that those working within the accounting sector are made aware of the money laundering threats and their obligations in disrupting these threats.

To access general guidance on money laundering regulation please follow this link to HMRC’s website HMRC Money Laundering Regulations.

What is an AML supervisor?

There are several obligations that the Money Laundering Regulations require of a bookkeeper or accountant but the most important is to be registered with a money laundering supervisor (also known as anti-money laundering (AML) supervisor).

An AML supervisor is a body granted supervisory authority by Parliament in accordance with the Money Laundering Regulations 2017. There are twenty-six such supervisors within the UK. Most of these supervisors are professional associations like the IAB but the list also includes HM Revenue & Customs.

Those bookkeeping or accounting practitioners who are members of a professional association (such as the IAB) will appoint that association as their AML supervisor.

Those who chose NOT to join a professional association must appoint HM Revenue & Customs as their AML supervisor.

How the IAB helps members to comply with the Regulations

To be fully compliant with the Regulations sole traders and all other firms must implement policies and procedures designed to detect and thereby disrupt activities relating to money laundering and terrorist financing.

The IAB offers all of our professional members access to guidance and assistance to help you fulfil your obligations to the regulations. By registering as a member in practice with the IAB you will also gain access to AMLCC (The Anti-Money Laundering Compliance Company), an online product that assists users in meeting the Regulation requirements, such tools such as risk assessing clients and money laundering training.

If you want to enquire about becoming an IAB professional member please fill in the enquiry form on the Membership enquiry page.

For further advice on how to become a member or apply to the IAB for AML supervision please contact the Membership team at membership@iab.org.uk  or phone 01732 897750.

Available guidance

If you wish to see general guidance on money laundering regulation please follow this link to HMRC’s website HMRC Money Laundering Regulations

At the IAB, we follow the CCAB’s (Consultative Committee of Accountancy Bodies) anti-money laundering guidelines approved by HM Treasury. It contains everything you need to know about the legislation*.

Providing the best practical help to bookkeepers and accountants, it is an invaluable resource for all our members.

Click here for a full copy of the CCAB guidance specific to the Accountancy sector.

Click here for a copy of the Money Laundering Regulations 2017.

*Please note that the CCAB guidance has not yet been updated to reflect the changes between the 2007 and 2017 legislation. As soon as it is we shall update our website.

If you want to enquire about becoming an IAB professional please fill in this enquiry form on the Membership enquiry page.

For further advice on how to become a member or apply to the IAB for AML supervision please contact the Membership team at membership@iab.org.uk  or phone 01732 897750.