AAT warns of increased risks of money laundering under new Treasury proposals

The Association of Accounting Technicians (AAT) has warned businesses could be exposed to greater risks of money laundering under new Treasury proposals currently being considered in a public consultation.

A public consultation launched in June 2023 on plans that would see a single private company tasked with policing anti-money laundering (AML) rules for accountants and lawyers. Currently accountants follow strict laws on money laundering, with compliance checked by specialist professional body supervisors to protect businesses from economic crime.

The AAT has warned that shifting AML supervision to a single organisation for the entire accountancy profession risks weakening oversight and could potentially expose more businesses to money laundering risk.

Adam Harper, Director of Professional Standards and Policy at AAT, warned:

“AAT members and other accountants have to meet strict anti-money laundering regulations to ensure their clients are not at risk. Some of the government’s new proposals, including plans to create a private body to police money laundering rules for all professional services, could potentially open the floodgates to organised criminals seeking to launder money in the UK.

“The current system, whilst not perfect, ensures that each profession meets anti-money laundering rules which are tailored to their specific professions. Dramatically shifting to a new model, as set out in some of the Treasury’s plans, could lose that specialist know-how and weaken the anti-money laundering system that is in place.

“We are urging the Treasury to strengthen the current system rather than attempt to dismantle and rebuild the whole AML regime, which brings with it major risks for the UK’s small and medium sized businesses, who make up the backbone of UK plc.”

The government’s consultation on plans to reform anti-money laundering and counter-terrorism financing supervision is due to close on 30th September after three months. The proposals put forward follow a 2022 review of the UK’s AML regime, as well as the ambitions set out in the government’s 2023-26 Economic Crime Plan.