ACCA raises concerns over FCA move for AML supervision

Core Viewpoint - The ACCA expresses significant concerns regarding the UK Government's proposed changes to the anti-money laundering (AML) supervisory framework, particularly the shift from professional body supervision to the Financial Conduct Authority (FCA) [1][2]. Group 1: Concerns Over Proposed Changes - The ACCA highlights "significant weaknesses" in the proposed model, which could increase exposure to economic crime and negatively impact the accountancy sector's development [1][2]. - The organization warns that the transition to FCA supervision may lead to reduced professional competence checks and weaker ethical oversight, potentially resulting in lower standards and increased risk of wrongdoing [3]. - There are fears that higher costs and administrative burdens could cause some companies to discontinue their membership in professional bodies [2]. Group 2: Implications of the New Supervision Model - The ACCA argues that the current system benefits from supervision by organizations with detailed sector knowledge, which is crucial in deterring economic crime, and that this capability would take years to replicate under a new supervisor [4]. - The introduction of a Single Professional Services Supervisor (SPSS) model may lead to dual supervision and fees for firms, which could be unjustifiable in a challenging economic climate [5]. - The ACCA calls for the government to engage with UK accountancy organizations to clarify the proposals and reduce uncertainty [4].