Warning: Emerging threats in accountancy

New money laundering, terrorist financing and proliferation financing risks are emerging in the accountancy sector.

Criminals continue to exploit new and existing technologies and services to carry out illicit activity. This is reflected in the recently updated Accountancy AML Supervisors Group (AASG) Risk Outlook.

The impact of money laundering is devastating. It enables serious organised crime such as modern slavery, drug trafficking, fraud, corruption and terrorism.

The updated AASG Risk Outlook now includes additional information around new risks and continued emerging threats, including:

• cryptocurrency
• proliferation financing
• Register of Overseas Entity verification services
• supply chain risk
• TCSP services
• trade sanctions
• umbrella companies.

What does this mean for AAT-supervised firms?

AAT monitors how its supervised firms are complying with their AML obligations during our practice assurance monitoring activities and desk-based reviews.

All accountancy and bookkeeping firms and Trust or Company Service Providers (TCSPs) should now review the AASG Risk Outlook, ensuring their firm-wide risk assessment and customer due diligence procedures fully incorporate the risks posed to the sector.

A comprehensive risk assessment is key to understanding the risks to which a business is exposed. By knowing and understanding the risks, accountancy firms can work with HM Government, law enforcement, and the professional body supervisors to make criminal exploitation difficult.

Where can I find more support?

AAT has published guidance, checklists, and templates to assist our supervised firms’ compliance with the Money Laundering Regulations.

We also operate an AML helpline, offering advice on all aspects of complying with the Money Laundering Regulations, such as how to report suspected illegal activity. AAT supervised firms can contact the helpline on +44 (0)20 7367 1347 or at [email protected].

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.