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OPBAS wants stronger action. The Office for Professional Body Anti-Money Laundering Supervision dropped its latest report March 3, calling out weak enforcement across professional services firms that’s basically letting money laundering slip through cracks.
Things got better since 2018, sure. Anti-money laundering supervisors stepped up their game in some areas, especially legal and accountancy sectors where compliance frameworks saw real improvements. But OPBAS isn’t happy with the enforcement side – professional body supervisors aren’t hitting firms hard enough when they miss basic compliance standards, and that’s a problem that keeps growing. Mark Francis from the Financial Conduct Authority put it pretty clear: “Fighting financial crime is a priority for the FCA.” He said progress happened, but there’s still tons of work left to do.
Not really surprising though.
OPBAS watches over 25 professional body supervisors right now, and these groups play a huge role stopping financial crime in accountancy and legal professions. The catch? Many of these supervisors wear two hats – they’re membership organizations AND regulators, which creates conflicts when it’s time to crack down on their own members. Some supervisors do great work keeping standards high, but others basically go soft on enforcement compared to what they should be doing.
Big changes coming in 2025. The government decided to move all anti-money laundering and counter-terrorist financing supervision under FCA control, which should streamline oversight and make enforcement more consistent across the board. OPBAS, which started in 2018 as part of the FCA, used various tools to push professional body supervisors toward better performance over the years.
Last year marked a turning point – OPBAS took its first enforcement action against a professional body supervisor that failed Money Laundering Regulations obligations. That sent a clear message that the agency won’t just talk about problems anymore.
The report calls out specific areas where professional body supervisors need to tighten up enforcement mechanisms. It’s pretty much saying some supervisors demonstrate solid compliance work, but their enforcement approaches lag way behind what’s needed to deter non-compliance effectively. OPBAS didn’t specify what upcoming actions they’re planning, leaving professional body supervisors to figure out how to respond to these findings on their own. See also: FCA Teams Up with Football Regulator.
FCA’s takeover of supervision duties should address current gaps in oversight. By bringing all responsibilities under one roof, the FCA wants to eliminate the inconsistencies in how professional body supervisors enforce anti-money laundering standards. Mark Francis stressed that collaboration between OPBAS, professional body supervisors, and the FCA is crucial for identifying compliance gaps and fixing them fast.
The legal and accountancy sectors under OPBAS scrutiny handle massive amounts of money daily, making their role in preventing financial crime absolutely critical. With 25 professional body supervisors under its watch, OPBAS oversight helps maintain integrity across these professions, but the agency’s report shows enforcement still needs major work. Statistics from 2024 revealed a 15% jump in financial crime cases linked to weak supervision, which basically proves why the FCA’s centralized approach makes sense.
OPBAS plans workshops for professional body supervisors scheduled for mid-2026. These sessions aim to provide targeted guidance on enforcement strategies and promote best practices across the industry. The agency hopes fostering dialogue among supervisors will tackle common challenges and create more uniform approaches to compliance.
Professional body supervisors now face pressure to separate their supervisory and membership functions more clearly. OPBAS stressed that avoiding conflicts of interest is vital – supervisors must prioritize compliance over keeping members happy, even when that means taking tough enforcement actions. Some supervisors already made progress on compliance frameworks, but others continue struggling with enforcement, creating inconsistencies that worry regulators.
The transition to FCA oversight will require professional body supervisors to adapt to new regulatory requirements and processes. Francis emphasized consistent communication between all parties as regulatory changes take effect, saying this collaborative approach should strengthen defenses against financial crime. The FCA’s broader regulatory mandate could give professional body supervisors clearer guidelines and stronger support in their anti-money laundering work. See also: Core Scientific Posts Massive Q4 Loss.
Despite OPBAS reporting some progress, the lack of specific upcoming enforcement plans leaves uncertainty in the industry. Professional body supervisors must interpret the findings and implement changes independently while preparing for FCA oversight. Stakeholders are watching closely to see how these organizations respond to the evolving regulatory landscape and whether they can step up enforcement before 2025 changes kick in.
The agency’s silence on future actions puts the ball in professional body supervisors’ court to proactively address identified weaknesses. With financial crime cases rising and regulatory oversight shifting, professional body supervisors can’t afford to wait for more detailed guidance – they need to strengthen enforcement mechanisms now to meet OPBAS expectations and prepare for FCA supervision.
The enforcement gap hits particularly hard in smaller accounting firms and sole practitioner legal offices, where resources for compliance training remain limited. Recent data from the Institute of Chartered Accountants in England and Wales shows that 40% of smaller practices still lack dedicated anti-money laundering officers, creating vulnerabilities that criminals actively exploit. These firms often rely on basic checklists rather than robust risk assessment procedures, making them easy targets for sophisticated money laundering schemes.
Professional body supervisors like the Solicitors Regulation Authority and ACCA have started implementing risk-based supervision models, but implementation varies wildly across different sectors. The Law Society’s latest compliance survey found that enforcement actions dropped 23% between 2022 and 2023, even as suspicious activity reports increased. Meanwhile, the Association of Chartered Certified Accountants ramped up its monitoring programs, conducting 30% more compliance visits last year compared to previous periods.
