New APB Guidelines on Money Laundering in UK
The Financial Reporting Council’s APB (Auditing Practices Board) has issued updated guidelines on money laundering for auditors in the profession.
This move by APB is being seen as a result of the numerous cases of money laundering the auditing profession has witnessed in the last couple of years.
The new International Standards on Auditing (UK and Ireland) has approved the new guidelines which was submitted in the form of Practice Note 12 (Revised), Money Laundering – Guidance for auditors in the United Kingdom.
The guidelines have been approved under the Proceeds of the Crime Act 2002 by the HM Treasury.
The consultation for the revised draft opened in March 2010. APBs consultation led to 3 responses from Deloitte, ACCA and ICAEW. APB’S draft saw a number of changes done to it though the board has described them as being “minor”.
One commentator of the revised draft was of the opinion that a major part of Practice Note 12 has been duplicated from the revised anti-money laundering guidance that is due to be issued by the Consultative Committee of Accountancy Bodies (CCAB) for the accountancy sector. The guidance is expected to come in later this year.
The APB said in a statement that though the CCAB guidelines have been used to duplicate almost half of its new guidance draft, the move is necessary.
The APB also said that this is necessary because when audit is done, proper application of the money laundering legislation is important in the proper context. Also, it is important that the CCAB guidance relates to the guidance on the application of ISA’s of UK and Ireland.