MLR2017 requires all firms that provide accountancy services, trust or company services, or related services such as tax advice, audit or insolvency, to be supervised for compliance by a professional body listed in schedule 1 of MLR2017.

AIA automatically supervises members under MLR2017. Members that provide trust or company services as part of their main accountancy practice will be supervised by AIA for all their work.

If a member has a group structure and has subsidiaries which are authorised firms under the Financial Services and Markets Act for FCA-authorised activities, AIA will supervise the non-FCA regulated work.

If you or your firm are operating in one of the business sectors within the scope of MLR2017 and you are not already supervised by a professional body or the FCA then you must register for supervision. HMRC has further guidance on their website.

If you hold an AIA practising certificate or are a current member and wishing to register for supervision please email aml@aiaworldwide.com.

Otherwise please make a membership and practising certificate application using the link below.

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Guidance is essential for all entities providing audit, accountancy, tax, insolvency or related services in the United Kingdom (including firms providing trust or company services) by way of business, irrespective of membership of a recognised professional body and sets out how to fulfil AML regulatory requirements.

AIA offers extensive guidance and support for supervised firms including:

• firm-wide risk assessment
• internal controls
• policies, controls and procedures
• training
• criminal record checks
• client due diligence
• simplified and enhanced due diligence
• politically exposed persons
• reliance on third parties
• record keeping and data protection
• Trust and Company Service Provision

In addition AIA provides:

• guidance on the legal requirements and best practice for submitting Suspicious Activity Reports (SARs)
• events and online courses relating to AML
• compliance checklists and templates
• guidance and updates on emerging risks
• free AML compliance software

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Accountancy firms supervised by AIA under the Money Laundering Regulations must have robust policies and procedures in place, appropriate to the individual firm's needs, to ensure anti-money laundering compliance and AIA is pleased to offer access to AMLCC free of charge to AIA Members in Practice.

AMLCC subscription provides firms with the essential tools needed to assess their clients through online reporting and record keeping as well as train their staff, this in turn gives reassurance to the AIA that AIA registered firms are meeting their statutory obligations and incorporating best practice into their work.

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The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR2017) requires all businesses acting as trust or company service providers (TCSPs) in the UK to be registered with HMRC where they are not already registered with the Financial Conduct Authority (FCA).

Firms that are not registered are not permitted under the MLR2017 to provide TCSP work.

MLR2017 REQUIREMENTS

Under MLR2017 a trust or company service provider is any firm or sole practitioner whose business is to:

1. form companies or other legal persons
2. provide a registered office, business address, correspondence address, administrative address for a company, partnership, other legal person or arrangement
3. act or arrange for another person to act as a:
• director or secretary of a company
• partner (or in a similar position) for other legal persons
• trustee of an express trust or similar legal arrangement
• nominee shareholder for another person, unless the other person is a company listed on a regulated market which is subject to acceptable disclosure requirements

A person is still considered to be a TCSP provider even if these services are provided incidentally to other accountancy services, or they are provided infrequently or on a one-off basis.

HMRC's TCSP registration guidance provides further information on what constitutes a TCSP.

HMRC'S TCSP REGISTER

In order to maintain the TCSP register, HMRC has requested that AIA (along with the other professional body supervisors) to notify HMRC of all the firms that we supervise that perform TCSP work.

AIA adds relevant firm details to HMRC's TCSP register based on your firm return information. The details on the register include:

• the name of your firm or your name if you are a sole practitioner
• the registered address of your firm
• confirmation by the AIA that the beneficial owners, officers and managers are fit and proper.

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AIA must check that supervised firms comply with Regulation 26 and that all beneficial owners, officers and managers (BOOMs) do not have a relevant criminal conviction.

AIA is only able to approve a BOOM if a valid DBS certificate has been reviewed.

Every newly appointed BOOM must obtain a DBS certificate at the time they become a BOOM and AIA must receive a notification of any appointment along with a copy of the valid DBS certificate. An individual cannot act as a BOOM within the practice without AIA authorisation.

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A RISK-BASED APPROACH

AIA operates a risk-based approach to AML supervision.

The frequency with which practices are reviewed is determined by a Risk Assessment prepared using annual return information, complaints or intelligence from law enforcement or open sources and a variety of other inputs.

TYPES OF MONITORING AND SUPERVISION

The type of review, whether Onsite or Desktop is determined by the AML risk within the practice, calculated by the likelihood and impact of money laundering activity.

AML monitoring is also undertaken during Quality Assurance monitoring.

Prior to any review AIA members submit a response to an advance information request, which is reviewed by the AIA Compliance Team before a subsequent Desktop Monitoring Review (conducted by telephone) or Onsite Monitoring Review Visit.

AIA monitoring ensures that practices have understood and implemented key aspects of the Regulations. During the review the practice's documentation and client files are also reviewed to ensure consistency of best practice.

MONITORING AND SUPERVISION TEAM

AIA's Quality Assurance Advisers and AML Reviewers are experienced individuals who receive regular training, including up-to-date information on the domestic and international risks of money laundering and terrorist financing which affect the accountancy sector.

INVESTIGATION AND ENFORCEMENT

In any instance where AIA monitoring identifies non-compliant behaviour a referral may be made to the AIA Practice Compliance Committee (PCC).

The Guide to Sanctions provides a flexible and comprehensive framework to deal with non-compliance with the Regulations. There are no limits on the fines that the Committee can impose.

Outcomes from the PCC and Disciplinary Process may include:

• Exclusion from membership
• Removal of practising certificate
• Unlimited fines
• Public reprimands
• Conditions (e.g. enforcement visit or additional training)

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If you come across an accountancy service provider (ASP) or trust and company service provider (TCSP) that does not appear to be regulated under the Money Laundering Regulations 2017 or appears to be ignoring the regulations, and you want to report it confidentially, you can do one of the following:

• contact their anti-money laundering supervisor
• if their supervisor is AIA, you can report this to us confidentially at aml@aiaworldwide.com or by calling 0191 493 0269
• if AIA is not their AML supervisor, you should contact the relevant supervisory body.
• contact the MLR Central Intervention Team at MLRCIT@hmrc.gov.uk

If you come across an accountancy firm or trust and company service provider that is supervised by AIA and appears to be ignoring the regulations, you can report it confidentiality to us. 

If information is provided to us on a confidential basis, we will take the appropriate steps to protect your identity.

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