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Julia Irvine



26 Jun 2017 04:46pm

The Financial Reporting Council (FRC) has published proposed new guidance for auditors on the new anti money laundering rules which came into operation today


It says its proposals will better link the requirements for auditors set by UK legislation with the audit itself; they will also refer to new material in ISA (UK) 250, Consideration of Laws and Regulations in an Audit of Financial Statements, which specifically refers to money laundering, terrorist financing and proceeds of crime issues.

“We believe that this will better integrate a strong understanding of money laundering related legislative issues within the auditor’s consideration of laws and regulations,” it says.

As part of the consultation, the FRC is proposing to get rid of its practice note, PN 12, Money Laundering: Guidance for Auditors on UK Legislation, and incorporate the material in an appendix to the auditing standard.

Welcoming the FRC’s move, ICAEW integrity and law manager David Stevens said, “This is a sensible approach that goes some way toward streamlining and consolidating AML guidance for the accountancy sector, achieving not only a government policy objective but also providing clarity for users.”

Today’s new legislation, The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, implement the 4th EU Anti Money Laundering Directive and Regulation.

The regulations will require businesses such as accountants, banks, estate agents and payment firms to carry out stringent and targeted checks to make sure that money changing hands is from a legitimate source and will not be used to fund terror acts.

They also apply to all partners and staff in a UK audit firm who are involved in providing audit services. The scope of the regulations extends to experts from other disciplines within the UK audit firm and employees as well as audit partners and staff and experts from other disciplines of non-UK audit firms, if they are involved in audit work.

As part of the consultation, the FRC is proposing to get rid of its practice note, PN 12, Money Laundering: Guidance for Auditors on UK Legislation, and incorporate the material in an appendix to the auditing standard.

The deadline for comments is 8 September.






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