The FCA’s anti money-laundering department has urged professional bodies to improve their anti-money laundering efforts after it reported ineffective supervision.

In its fifth report the Office for Professional Body Anti-Money Laundering Supervision (OPBAS) found that none of the professional body supervisors (PBSs) assessed were fully effective in all areas.

It warned that while most PBSs were complying with money laundering regulations, how they supervise was still not consistently effective. 

The report found weaknesses in how PBSs were using enforcement powers and tools to supervise members, with the number and value of fines issued declining on the previous year.

Proactive information and intelligence sharing with regulators and law enforcement was also inconsistent, according to the report, with some PBSs improving but limited sharing elsewhere hampering efforts to make a real dent in the flow of illicit funds in the UK.  

OPBAS is housed within the FCA and is responsible for supervising 25 PBSs for anti-money laundering purposes in the legal and accountancy sector.

It has used an increasing range of supervisory tools to hold PBSs accountable. They include using its powers to direct two PBSs to take action to remedy money laundering shortfalls.

In January 2023, OPBAS set out additional guidance on the outcomes PBSs need to achieve to enhance their work. It continues to assess PBSs against the revised sourcebook, prioritising its supervisory oversight on areas of greatest weaknesses.

Andrea Bowe, director, specialists at FCA, said: “The FCA is committed to playing a leading role in reducing and preventing financial crime. Through OPBAS, we have intervened to tackle failings where we have found them. However, we are still not seeing the consistent, effective improvement we need.” 

Tackling financial crime is a key priority for the FCA, she said. OPBAS will focus on improving the consistency and effectiveness of PBSs as part of its work. 

OPBAS was set up by the government to boost the fight against money laundering and terrorist financing, so-called 'dirty money', in 2018.