The number of fines issued has fallen with only 278 accountancy firms and tax advisers receiving a penalty with £550,000 worth of penalties issued in 2021-22, up significantly on the previous year’s £160,000, with an average fine of £1,800, showed the latest report from the Financial Conduct Authority’s (FCA) Office for Professional Body Anti-Money Laundering Supervision (OPBAS). Fines for law firm breaches were much higher on average at £8,000.

Only two accountancy and tax member firms were suspended, down from the previous year’s 15.

ICAEW sanctioned 53 member firms over AML weaknesses and issued penalties ranging from £350 to £24,500.

Although professional body supervisors (PBSs) had improved in some areas, such as enforcement action where the value of fines has almost doubled since 2019, many still fall short of the regulator’s expectations.