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AML Thematic Review

The firm-wide risk assessment

The money laundering regulations (MLRs) require every relevant organisation to take appropriate steps to identify and assess the risks of money laundering and terrorist financing to which its business is subject. We refer to this as the firm-wide risk assessment. It is the foundation upon which a firm builds its AML policies and procedures, particularly regarding customer due diligence (CDD). Read our latest thematic review on the firm-wide risk assessment for insights into what firms are doing well, where improvements can be made and for ICAEW's key reflections.

Read the review
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About this review

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100 high or high-medium risk firms took part

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Sets out the value of the firm-wide risk assessment

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Details the most common risks identified by our firms

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Incorporates key reflections from our quality assurance reviewers and AML supervision team

We asked the money laundering reporting officer (MLRO) at a sample of 100 high and high/medium risk accountancy firms a series of questions. We also asked for a copy of their most recent firm-wide risk assessment. ICAEW’s Quality Assurance Department reviewed the responses and our summarised findings are included in this report – alongside our key reflections – we recommend firms pay particular attention to these insights.

What are firms doing well?

The majority of firms had completed a firm-wide risk assessment. We have noted that this percentage has increased year on year, since the requirement was first introduced in 2017. This indicates that our firms are reflecting more carefully on money laundering risks and considering the mitigations. It enhances our profession’s defences, protecting us against the risk of being used as professional enablers by those seeking to legitimise and launder the proceeds of crime.

The firm-wide risk assessment is a good opportunity to reflect and to challenge your own view of your client base.”

Sandy Price, Manager, Anti-money Laundering Compliance, Professional Standards Department, ICAEW