The Financial Conduct Authority (FCA) has launched a consultation on a supervisory body for anti-money laundering.
The Office for Professional Body AML Supervision (OPBAS) was proposed by the government in March 2017, as an additional function within the FCA.
The government proposed that OPBAS would scrutinise the anti-money laundering supervisory arrangements of 22 professional bodies, and released draft regulations to this effect on 20 July.
The FCA consultation presents draft expectations of how supervisors of professional bodies can meet their obligations with respect to AML supervision.
Megan Butler, executive director of supervision – investment, wholesale, and specialists division at the FCA said:
“The government asked for the FCA to be responsible for reviewing the quality of AML supervision carried out by professional body supervisors.
“The aim of OPBAS will be to ensure consistency and quality and to drive up standards across all professional body AML supervisors in the UK.”
The FCA said that OPBAS will develop understanding of the bodies and sectors supervised, adopt a risk-based approach, and work with other bodies for oversight roles.
The FCA said it expects OPBAS to be operational by the beginning of 2018 and to work within the FCA’s existing arrangements for government.
Professional body supervisors will be charged a fee to cover its running costs, which the FCA said will be part of its annual consultation on fees.