The government has launched a watchdog to strengthen the UK’s defences against money laundering and terrorist financing based within the Financial Conduct Authority.
The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) will work with all the UK’s anti-money laundering (AML) supervisors to help improve standards, and with law enforcement to strengthen cooperation.
There are 25 anti-money laundering supervisors in the UK, 22 of which are accountancy, estate agents and legal services providers’ professional bodies.
OPBAS will directly oversee the 22 accountancy and legal professional body AML supervisors.
It will ensure these 22 organisations meet the high standards set out in the Money Laundering Regulations 2017, and has powers to investigate and penalise those that do not.
Its powers allow it to publicly censure or recommend HM Treasury remove professional bodies that do not comply with their requirements in the money laundering regulations.
OPBAS will not directly monitor the businesses that the professional bodies supervise.
Economic secretary to the Treasury, John Glen, said:“This new watchdog will deepen the government’s partnership with the private sector as we work together to tackle illicit finance whilst minimising the burdens on legitimate businesses.
"This sends a clear message to criminals and terrorists that their dirty money is not welcome here.”
The Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017, which underpin OPBAS, took effect on 18 January.
