ICAEW reports 80% compliance in 2024/25 AML supervision review

Core Insights - The Institute of Chartered Accountants in England and Wales (ICAEW) reported that 80% of member firms are compliant or generally compliant with anti-money laundering (AML) regulations for the financial year 2024/25, a slight decrease from 80.6% in 2023/24 [1][2] - The share of firms assessed as fully compliant increased from 13.9% to 19.4% year-on-year [2] - ICAEW conducted 1,185 monitoring reviews in the recent reporting period, up from 1,112 in the previous year [1] Compliance and Monitoring - ICAEW's risk-based framework ensures that all firms are reviewed at least once every eight years, with more frequent checks for higher-risk firms [3] - The review process resulted in 237 firms being instructed to take further actions to address deficiencies, with 41 firms facing financial penalties totaling £197,706 [2][4] - Three members lost their membership due to compliance issues [2] Regulatory Changes and Industry Impact - ICAEW provides various materials and training resources to assist member firms with compliance requirements [4] - The recent report coincides with HM Treasury's consultation on overhauling AML and counter-terrorism financing supervision within professional services [6] - The government plans to introduce a Single Professional Services Supervisor (SPSS), designating the Financial Conduct Authority (FCA) for this role, which has led to disappointment from ICAEW regarding the loss of supervisory responsibilities [7]