In its first enforcement action against an organization that sets professional standards, the U.K.’s Financial Conduct Authority (FCA) sanctioned the Institute of Certified Bookkeepers (ICB) for failings in its oversight of anti-money laundering (AML) compliance.
The FCA found that, between January 2022 and July 2023, the organization failed to adequately review AML compliance for the 3,000 bookkeepers under its oversight — which the regulator said “exposed the sector to greater money laundering risks.”
In particular, the group suspended all compliance inspections for nine months — both in-person and virtual examinations — which the FCA said “seriously undermined” its ability to oversee compliance with AML requirements.
“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,” said Therese Chambers, joint executive director of enforcement and market oversight at the FCA, in a release.
The FCA, which doesn’t have the authority to impose financial penalties in this sort of case, sanctioned the ICB by publicly censuring the group.
“This outcome demonstrates that the FCA is prepared to take enforcement action against professional body supervisors where their oversight of member organizations falls below the high standards we expect,” Chambers added.
In a statement, the ICB acknowledged the sanction and said that its supervisory capabilities and governance have been “substantially strengthened” since the violations took place.
“We accept the FCA’s findings and recognise the importance of consistently robust, risk-based AML supervision,” said Ami Copeland, CEO of the ICB, in a release.
“The period referenced in the notice does not reflect where ICB is today,” she added. “Since becoming CEO in January 2023, strengthening AML governance and supervision has been a core remit, and we have made significant changes to our team, our oversight, and the way we evidence and deliver AML supervision.”