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Before the introduction of the new Money Laundering Regulations 2007, those offering accountancy services, such as book-keeping, payroll and tax consultation, were able to do so effectively without regulation.

From 15 December 2007, however, it is a legal requirement that any person or firm acting as an Accountancy Service Provider (ASP) must be registered with and monitored by a recognised supervisory authority.

It is estimated that there are currently over 40,000 unregistered ASPs who under the regulations must register either with a supervisory authority or with HM Revenue & Customs (HMRC).

David Woodgate, chief executive of the Institute of Financial Accountants, said that any ASPs who are ineligible for or choose not to apply for membership of a professional body with supervisory status will be required to register with HMRC, who will then oversee their activities.

The deadline to register with HMRC is 1 July 2008 and their register opens on 1 October 2008.

Woodgate warned that anyone trading after 1 October 2008 who is not monitored by one of the supervisory bodies or registered with HMRC will be trading illegally.

HMRC will charge an annual fee for this service and the registration window will only be open between 1 April and 1 July 2008. 

Members of one of the supervisory bodies under the regulations (such as the IFA) will not have the choice to be monitored by HMRC as they will only monitor ASP’s who are not members of one of the supervisory bodies.

From its inception in 1916 the Institute of Financial Accountants (IFA) has always set the highest standards of technical expertise and ethical behaviour amongst its members.

This has resulted in the Institute becoming the largest professional body of its type in the world, attracting members from over 80 countries.

It is against this background that the IFA is well placed to assist unregistered ASPs in meeting their obligations under the Money Laundering Regulations 2007.

“As a registered supervisory authority, the IFA has the expertise and the infra-structure in place to provide adequate guidance and support to all ASPs whatever their size or nature of the services they offer,” said Woodgate. 

There are three different levels of membership, Financial Accounting Technician, Associate and Fellow, allowing a match between the level of membership and the skills required for the particular services offered.

While the normal route to membership is through a series of examinations, the IFA said it understands that this may not be appropriate for all those seeking membership of a professional body and so it is able to offer two alternative routes.

Firstly, those already holding certain financial qualifications may be awarded exemption to all or some of the exams necessary for the different levels of membership. 

Secondly, the IFA believes that it is essential to recognise that accreditation be given to knowledge and expertise developed by practitioners while ‘doing the job’.

“It is now possible to gain membership through the Institute’s Accredited Prior Learning route for those able to demonstrate the competency levels required by the Occupational Standards in Accounting,” said Woodgate.

He believes that the reputation, proficiency and flexibility of the Institute of Financial Accountants make it a viable alternative to HMRC for unregistered Accountancy Service Providers.

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Related links 

• Institute of Financial Accountants
• HM Revenue & Customs