FCA censures Institute of Certified Bookkeepers for failings in anti-money laundering supervision

The FCA has censured the Institute of Certified Bookkeepers (ICB) for serious deficiencies in its anti-money laundering (AML) supervision.

ICB is a professional body supervisor responsible for overseeing the AML compliance of over 3,000 bookkeepers under the Money Laundering Regulations 2017.

Between January 2022 and July 2023, ICB breached key AML regulations relating to its role as an AML supervisor, thereby increasing the risks of financial crime amongst members.

ICB failed to adopt an adequate risk-based approach to its supervisory functions and did not effectively monitor its members. The most serious breaches were caused or made worse by ICB’s decision to suspend all inspections - both onsite and virtual - for nine months. During this period, ICB’s ability to scrutinise members’ compliance with AML regulations was seriously undermined. The failings exposed the sector to greater money laundering risks.

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said:

'Anti-money laundering rules stop criminals from exploiting the financial system and help protect people, businesses and wider market trust. Strong AML supervision matters because it ensures these safeguards work in practice.

'This outcome demonstrates that the FCA is prepared to take enforcement action against professional body supervisors where their oversight of member organisations falls below the high standards we expect.'
 
The Government has recently announced planned reforms to make the FCA the Single Professional Services Supervisor, aiming to deliver a more effective approach to combatting illicit finance. These reforms will take time to implement. In the interim, OPBAS will continue to work with professional body supervisors to ensure compliance with AML regulations.

More information 

• Read the Final Notice[1] issued to ICB.
• ICB is supervised by the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), part of the FCA.
• OPBAS was established to strengthen the UK’s AML supervisory regime.
• ICB breached certain provisions in the MLRs 2017, which set statutory obligations for AML compliance and supervision of relevant businesses.
• The FCA considers that a public censure is the appropriate sanction in this case. The FCA does not have power to impose a financial penalty under the Oversight of Professional Body Anti-Money Laundering and Counter Terrorist Financing Supervision Regulations 2017 (OPBAS Regulations 2017).
• The FCA enables a fair and thriving financial services market for the good of consumers and the economy.
• Find out more about AML supervision and OPBAS[2] on the FCA website.