Economic crime: inquiry
Executive summary
- AAT is wholeheartedly committed to tackling money laundering and economic crime and has made considerable investment in doing so.
- AAT remains concerned that approximately a third of the accountancy and tax advice sector is unregulated. This unregulated sector poses a greater money laundering and economic crime risk than those who are members of a professional body and it would therefore make sense to require anyone offering paid for tax and accountancy services to be required to be a member of a professional body.
- The effectiveness of OPBAS should be independently reviewed as soon as possible. When giving oral evidence to the Treasury Select Committee’s Economic Crime inquiry in 2018, AAT recommended that this occur in 2020 and this has not happened.
- AAT does not believe government plans to impose a £100 million annual economic crime levy on British business is acceptable. New annual anti-money laundering costs have very recently been imposed via OPBAS and the economic climate for many businesses as a result of both the pandemic and Brexit is very challenging. In addition, the level of uncertainty about how to calculate and collect such a levy in a fair and reasonable manner makes its introduction inappropriate at the present time.
- AAT does not believe that the timescale for the Law Commission to consider the issue of corporate liability for economic crime is reasonable. The intention to only publish an options paper at the end of 2021 and to then work with the government on next steps, including the potential for a full Law Commission project on corporate criminal liability is unacceptable.
- AAT believes that company directorships should be limited to a maximum of no more than 20. The government chose to abandon plans for limits when announcing its intentions in this area in September 2020 and so AAT urges the Treasury Select Committee to closely examine this issue.
Related consultation responses
Improving the effectiveness of the Money Laundering Regulations
AAT supports the government’s drive to combat money laundering and terrorist financing and to ensure that UK businesses are appropriately supported.
Spring Budget 2024 representation
This representation ahead of the March 2024 Spring Budget sets out AAT’s policy position on tax, professional standards, support for SMEs and late payments.
Reforming anti-money laundering and counter-terrorism financing supervision
AAT contends that the OPBAS+ model is the most suitable option and would result in a demonstrable improvement in the sector.
