News
Print Article

HM Treasury releases its 2022-2023 AML/CFT supervision review.

02/05/2024

HM Treasury has issued its eleventh report on AML/CTF supervision. The report is a comprehensive review that provides detailed information on the performance of AML/ CTF supervisors in the 2022-23 financial year. This report fulfils HM Treasury’s obligation, under Section 51 of the Money Laundering Regulations (MLRs), to publish an annual report on supervisory activity using information requested from supervisors.

Each chapter of the report considers a specific area as follows:-

  • Chapter 2 details each supervisor’s crucial risk-based approach in relation to supervising their population, outlines their supervisory activity and considers information-sharing.
  • Chapter 3 considers supervisors’ use of dissuasive enforcement to promote compliance with the AML/CTF standards among their supervised population.

Highlights

  1. 10% of supervised firms were considered high risk (in line with previous years); 5.5% of regulated businesses were subject to a desk-based or onsite review in 2022-23. Interestingly, PBS reviewed nearly 10% of their populations.
  2. The FCA found pretty low levels of non-compliance (4% of firms subject to a desk-based review), especially compared to the Gambling Commission, which found that nearly half of firms subject to a desk-based review were non-compliant (and 89% of firms subject to an onsite review!).
  3. The report highlights the varying levels of non-compliance across sectors. For instance, the accountancy and legal sectors reported non-compliance rates of 16% and 17% respectively among firms subject to a desk-based review.
  4. Average fines: FCA - £19.4m, Gambling Commission - £2.8m, HMRC - £7,000 and PBSs - £4,000.
  5. Note that the overall fines dropped from the prior year, but that's driven by the significant fines we saw from the FCA during that period.
Source

https://assets.publishing.service.gov.uk/media/6630f2b4120ab0e20c4b9bdb/Final_annual_supervision_report_2022-23.pdf

https://www.gov.uk/government/publications/anti-money-laundering-and-countering-the-financing-of-terrorism-supervision-report-2022-23?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=710bcff2-0ac5-4c84-8c8e-d02822e1bad6&utm_content=immediately

UNITED KINGDOM

The Team

Meet the team of industry experts behind Comsure

Find out more

Latest News

Keep up to date with the very latest news from Comsure

Find out more

Gallery

View our latest imagery from our news and work

Find out more

Contact

Think we can help you and your business? Chat to us today

Get In Touch

News Disclaimer

As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.