U4 Anti-Corruption Resource Centre

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

Who supervises the enablers in terms of anti-money laundering? What are the main international professional bodies (for example IFAC, IBA) who have policies/guidelines in place for this? How global is their coverage? Are there other bodies with relevant policies or guidelines in place?

Summary

Professional enablers play a crucial role in illicit financial flows (IFFs). Tackling professional enablers requires, among other methods, consistent and effective regulation, and supervision of critical occupations, including financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs). A scan of publicly available information on such bodies reveals a scenario of scattered supervision for DNFBPs, with supervisory frameworks often following the profession and not the high-risk activity. Supervision can be under the responsibility of self-regulatory bodies or government agencies, or a mix of the two.

Contents

  1. Background
  2. Supervisory bodies
  3. Examples of supervision
  4. Guidance by international professional bodies
  5. Other resources
  6. References

Main points

  • Professional enablers can come from various financial and non-financial sectors.
  • Tackling such professional enablers requires, among other methods, consistent and effective regulation, and supervision of critical occupations such as accountants, lawyers, bankers, real estate agents, art dealers and luxury good traders, etc.
  • Different jurisdictions have varying AML/CFT regimes and inconsistent standards for professional conduct, making regulation scattered and uneven.

Caveat

The list of supervisory and professional bodies mentioned in this answer is meant to be illustrative and not exhaustive. The answer is the second in a two-part series on professional enablers of illicit financial flows. The first part can be accessed here.

Authors

Kaunain Rahman (TI), tihelpdesk@transparency.org

Reviewers

Sophie Lemaitre (U4), sophie.lemaitre@cmi.no

Maira Martini (TI), tihelpdesk@transparency.org


Date

29/10/2021

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