The success of the UK’s Anti-Money Laundering regime is being hindered by a disjointed approach, lack of connectivity and co-ordination between organisations, respondents say in a new report from CCAB, the collective forum of accountancy bodies, made up of ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.

The report “Coming out in the wash” is based on the views of leading accountancy and business practitioners, policymakers and law enforcement officials in the anti-money laundering sphere.

Despite this, the general view is that while the UK’s anti-money laundering regime is considered to be among the best deterrents, more could be done to strengthen it. It is recommended that there could be more sharing of information in a timely manner between the relevant organisations involved in tackling money laundering, greater effectiveness in cracking down on cross-border laundering, as well as more resources across all sectors.

 Accountants are gatekeepers of the financial system and the report claims that more can be done to achieve regulatory consistency of those providing accountancy services under the UK’s anti-money laundering framework.

Anthony Harbinson, chair of CCAB, Director of Safer Communities, Northern Ireland Department of Justice, said: “The purpose of this report was to see what was working, what wasn’t and where we need to go as a profession in the future to play a full and effective role in the collective effort to tackle organised crime.

“Clearly, across the accountancy profession, AML measures are taken seriously, but the system, although recognised as being among the best in tackling money laundering, is far from perfect. The paper aims to identify where we can work with others in a joined-up approach, to communicate successes and the role of the profession in tackling money laundering, as the regime is implemented by more  EU member states and extended by the fourth money laundering directive. It should give food for thought to the authorities on what might be done, in statutory and other terms, to enhance the effectiveness of the regime.”

“While AML poses challenges to be tackled by the professions, businesses, government and crime fighting agencies collectively, the accountancy profession is keen to play a key  role in that effort. However, we cannot do it alone.”

“Policy makers and regulators have to address the risks posed by unqualified accountants who are perceived as less effective in detecting and guarding against this kind of financial crime. Equally, cross border efforts and the sharing of intelligence is a prerequisite of maintaining an effective system.”

The future of AML

According to the report, research participants think that in future, there will be a greater emphasis on information sharing between stakeholders involved in the AML regime, coupled with a better awareness of AML, especially among businesses and the general public. They also expect to see tighter regulation, with more control of the unregulated sector and a more standardised approach across accountancy firms and the regulated sector.

Anthony Harbinson said: “Organised criminals are well resourced and innovative. Whenever new opportunities present themselves they will be exploited for their potential as devices for laundering money – the current spread of mobile payment technologies is a good example of the dynamic environment we are dealing with. To meet this evolving challenge, all those operating in the financial sector need to maintain the same commitment and professionalism in tackling financial crimes, including those who are currently unregulated or unqualified.”

Read the full report http://www.ccab.org.uk/documents/FinalReport.pdf

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Notes to Editors:1. The combined membership of the five CCAB bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland - amounts to 245,000 professional accountants in the UK and the Republic of Ireland (354,000 worldwide).2. CCAB’s credibility stems from its insight into all areas of finance and accounting, from finance director and audit partner to management accountants, professional advisers, public sector finance leaders and entrepreneurs.  CCAB’s members work through the financial value chain in all sectors as key decision makers and business leaders within the UK and around the world.

3. Brunswick Insight conducted thirty-one qualitative in-depth interviews between 8 January and 22 April 2014.  These interviews were conducted by telephone and lasted approximately 30 minutes.  Participants were asked for their views on the current anti-money laundering regime in the UK, ways the regime could be improved and views on the accountancy profession’s contribution towards prevention of money laundering activities.

4. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

5. We support our 162,000 members and 428,000 students in 173 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.

6. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.