The UK Financial Conduct Authority (FCA) has launched a consultation over the supervisory approach to be adopted by the new Office for Professional Body Anti-Money Laundering Supervision (OPBAS).
The government announced its intention to create OPBAS as a function within the FCA in March and last week published draft regulations (13 page / 87.6KB PDF) which will give powers to the new body.
OPBAS will supervise 22 professional bodies affected by anti-money laundering (AML) requirements, including the Institute of Chartered Accountants in England and Wales, the Law Society of England and Wales and the Solicitors Regulation Authority, the Bar Council and the Bar Standards Board, and similar bodies in Scotland and Northern Ireland.
It will have information gathering powers, the power to commission independent reports, and direction issuing powers. OPBAS will be able to review professional body supervisors and will take over the collection of annual AML questionnaires, which are currently submitted to the Treasury.
If a professional supervisory body falls short of its standards, OPBAS will have a range of powers including the ability to recommend that a body be removed from its supervisory role.
The FCA consultation (31 page / 431KB PDF) suggests that additional costs incurred through the creation of OPBAS are likely to be passed on to professionals via increased fees.
The FCA is asking for responses to its consultation on issues including the proposed sourcebook for professional body supervisors with regard to OPBAS, and the cost-benefit analysis of the new body, by 23 October.
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