Responsibility of supervisory authorities etc
For the latest New Developments, see ND.1328, ND.1384.
A supervisory authority must effectively monitor the relevant persons that it supervises and take necessary measures for the purpose of securing compliance with the requirements of the money laundering rules1. The professional bodies detailed in the 2017 Regulations, regulation 7 and Sch 1 are the supervisory authorities for the relevant persons who are regulated by it2.
Each supervisory authority must identify and assess the international and domestic risks of money laundering and terrorist financing to which those relevant persons for which it is the supervisory authority are subject3.
The duties of supervisory authorities are set out in regulation 46. These include effectively monitoring the relevant persons for which it is the supervising authority (its 'own sector') and taking necessary measures to secure compliance. Each authority is required to adopt a risk-based approach to its supervisory functions, informed by its own risk assessment, and must ensure that its employees and officers have access to information on the domestic and international risks of money laundering and terrorist financing affecting its sector. It is responsible for taking effective measures to encourage its own sector to report actual or potential breaches of the 2017 Regulations to it and provide one or more secure channels to do so. It must also take measures to review the risk assessments and the adequacy of policies, controls and procedures adopted by relevant persons4.
If, in the light of any information obtained by the supervisory authority,