June 26 2019
The accounting profession is a diverse sector with accountants that vary substantially in the breadth and nature of services they provide, the clients they serve and the size and level of sophistication of the firm and its employees.
The legally required services that accountants provide make them vulnerable to become unwittingly involved or accessory to money laundering or terrorist financing activities. Recent FATF research highlighted examples of accountants that had used their occupation, business infrastructure and knowledge to facilitate money laundering for criminal clients. For example, professional money launderers have been known to keep a shadow accounting system with records of transactions involving proceeds of crime. Accounting and related auditing firms must therefore protect themselves from misuse by criminals and terrorists.