The Financial Conduct Authority (FCA) has launched a consultation regarding the government-proposed Office for Professional Body AML Supervision (OPBAS). The consultation sets out draft expectations about how professional body supervisors can meet their obligations in relation to AML supervision.
In March 2017, the government announced its intention to create OPBAS as a new function within the FCA. The government has proposed that OPBAS oversees the adequacy of the anti-money laundering supervisory arrangements of 22 professional bodies. On 20 July 2017, the government published draft regulations that will give powers and responsibilities to OPBAS.
Megan Butler, Executive Director of Supervision - Investment, Wholesale and Specialists Division at the FCA said:
“The government asked 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.”
OPBAS’s approach will be to:
- Develop a sound understanding of the workings of the different bodies and sectors they supervise
- Adopt a risk-based approach that concentrates its supervisory resources where the risk is greatest
- Liaise with other bodies with oversight roles for the professions to share good practice and avoid supervisory conflicts
The FCA expects OPBAS to be up and running by the beginning of 2018 and for it to operate within the FCA’s existing governance arrangements. It will charge professional body supervisors a fee to recover its running costs. The FCA will consult on an approach to levying fees as part of the FCA’s annual consultation on fees in due course.
Background:
- The 22 professional bodies are:
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2. The FCA’s consultation can be found here: https://www.fca.org.uk/publications/guidance-consultations/gc17-7-sourcebook-professional-body-supervisors-anti-money-laundering
3. The government’s draft regulations and consultation can be found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/628994/OPBAS_Draft_Regulations.pdf
4. The government’s original announcement that it will create OPBAS can be found here: https://www.gov.uk/government/consultations/call-for-information-anti-money-laundering-supervisory-regime
5. On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.