FCA's CP20/7: Quarterly Consultation Paper No 28

Once a quarter, FCA consult on proposed miscellaneous amendments to their Handbook. This consultation focuses on the OPBAS Sourcebook, Bounce Back Loan Scheme and a rule clarification to confirm the ability of the FSCS to declare in default firms and successors subject to the proposed new moratorium under the Insolvency Act 1986.

ACCA is a Professional Body Supervisor (PBS) for anti-money laundering (AML) in the UK. We welcome the opportunity to provide feedback on the proposed changes to the Sourcebook of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) in respect of the requirement for criminality checks under Regulation 26 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the ‘MLRs’), as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 on 10 January 2020.

ACCA engaged with the development of the OPBAS Sourcebook in 2017*, advocating a principles-based and proportionate approach to setting expectations for compliance with the MLRs and the AML supervision of members of PBSs. We therefore welcome the review and update of guidance within the Sourcebook to reflect the recent amendments to Regulations 26 and 46 of the MLRs.

ACCA recognises there is a risk of an approved person being convicted of a relevant offence and the perception that this will increase the risk that the individual will therefore be more susceptible to involvement in money laundering. However, we believe that the expectations for compliance with the requirements of Regulation 26 should be proportionate and risk-based. Therefore, we have some detailed concerns with the proposed changes to the Sourcebook, and these are highlighted in our response where appropriate.

To see the full response please download the consultation document.