- Three new guides have been released to help accountants enhance their understanding of money laundering
- The guides introduce anti-money laundering, cover the risk-based approach and company formations
- The guides are part of a series developed by IFAC and ICAEW
‘Anti-Money Laundering: The Basics’ is a new series of guides to help accountants enhance their understanding of how money laundering works, the risks they face, and what they can do to mitigate these risks and make a positive contribution to the public interest.
To be globally relevant, the series uses the risk-based approach of the FATF – the global money laundering and terrorist financing watchdog -- as a starting point.
The six-part series is being developed by IFAC together with ICAEW and will be released over a period of six months.
Installment One provides an overview of what money laundering is and how it works.
Instalment Two explains that accountants need to understand the risks of money laundering across the countries they work with, the services they provide and the clients they serve. This instalment explores the key foundations of a risk-based approach to fighting money laundering for professional accountants.
Installment Three, Company Formation, explains that accountants involved in company and trust formation should be aware of the risk of money laundering in these services. The guidance not only identifies key red flags for money laundering risk in the company formation process but also illustrates when to walk away from this type of work. It also explains that, if an accountant becomes suspicious that the client or potential client has committed a crime with proceeds, then that accountant may have an obligation to report those suspicions to their local Financial Intelligence Unit by way of a Suspicious Activity Report.
These guides are useful for any accountant looking to enhance their understanding of money laundering.
To access the guides, please click on the below links.