是時候數(shù)字化第一道防線了嗎

1、ContentsRisk, reputation and your client base 5 HYPERLINK l _TOC_250003 Where do accountants sit on this? 5KYC tools and the modern accountant 8Why might it matter? 11 HYPERLINK l _TOC_250002 Keeping other records online in digital format 15 HYPERLINK l _TOC_250001 Who needs to make the next move an

2、d what is it? 17Summary 17 HYPERLINK l _TOC_250000 References 184Risk, reputationand your client baseBuilding value, like building trust, is a slow and painstaking business and both can be destroyed in an instant. When assessing the value of an accountancy practice, theres probably a debate to be ha

3、d about which is more important to building sustainable value in the practice: good clients or good staff. But one thing is certain: a single bad client can destroy the practice and its value every bit as effectively as a rogue employee.So how can accountants protect themselves from the risk to thei

4、r reputation that entanglement with criminalscould bring? Tell-tale signs, such as a bag labelled Swag or a tendency to wear stripey shirts and climb into the office through the window are sadly restricted to the domain of storybooks and childrens cartoons.There are indicators though, and some of th

5、e clearest can be established at the outset of a relationship.When a new client presents themselves, knowing thatWhere do accountants sit on this?The accountancy sector is typically viewed as medium- high to high risk in Country Risk Assessments carried out under international Financial Action Task

6、Force (FATF 2012/2020) guidelines.1 In some ways, this is perhaps unsurprising accountants are closer to the flow of money than anyone but the banks (whose retail operations are often the only sector seen to be at higher risk). But do accountants themselves recognise this risk?they are who they say

7、they are and that the source of their funds is legitimate may not be a guarantee offuture conduct but it is very much the case that an attempt to use a false identity, or conceal the source of funds, should be an instant warning sign to any adviser that they should steer well clear.In many jurisdict

8、ions, checking a clients identity and keeping records of those checks is not simply a matter of good practice, but a legal obligation under local anti money laundering and counter-terrorist financing rules. While the precise scope of national regulations vary, the goals are consistent, and in every

9、case are guided by the outcome (disrupting criminal activity) rather than simplyFor any system to be effective there needs to be anunderstanding of the underlying drivers eg combat criminal activity, and the corresponding risk posed by individual clients. In this context I dont believe the regulator

10、s have achieved the right balance by adopting a blanket approach to all clients, irrespective of the potential risk posed. This has created a tick-box culture where the emphasis is on the implementation of a cost- effective admin function, rather than a client-focused approach to risk assessment and

11、 the need for greater due diligence on the few, with the resulting greater potential to identify and combat criminal activity. Survey respondent, Wales, UKa desire to formalise and standardise certain aspects of business record keeping.But even if policymakers approach KYC from that perspective, is

12、there a risk that those who carry out these checks think solely about the process rather than the outcome and if so, what should we seek to change?In order to explore accountants perceptions of the tools available, their value and how they might be improved, ACCA undertook a small global survey of p

13、rofessional accountants in January 2021. Of the 278 respondents, 170 were based in Western Europe (primarily the UK) butFor rules as they apply in a sample of countries, see UK: HM Treasury & Home Office, 2020: 79; Ireland: An Roinn Airgeadais/ Department of Finance and An Roinn Dli Agus Cirt Agus C

14、omhionannais/ Department of Justice and Equality, 2016: 6; Luxembourg: Le Gouvernement du Grand-Duche de Luxembourg Ministere des Finances, 2018: 9. Links to the rules of nations around the world are given on the FATF website at HYPERLINK /publications/methodsandtrends/documents/ml-tf-risks.html /pu

15、blications/methodsandtrends/ HYPERLINK /publications/methodsandtrends/documents/ml-tf-risks.html documents/ml-tf-risks.html, accessed 9 April 2021.5with every region of the world represented in the survey findings. While the sample size is of limited statistical value for the other world regions, th

16、e respondents comments offer a useful (and remarkably consistent) insight into the viewpoints and concerns of professional accountants in small and medium-sized practices.The anecdotal evidence suggests that a significant minority of accountants would challenge the FATF assessment of risk. Several s

17、urvey respondents volunteered their perceptions that the risk to them or their practice was negligible, and that the checks themselves are ineffective in tackling crime.Survey respondents certainly recognised the potential value of KYC checks but rated the regulatory and reputational implications fo

18、r their practice consistently more highly than the wider society benefits of reducing crime, and rated all three ahead of the scope for adding value to their client relationships.I dont think it stops any major crime. Being a small practice, we know reasonably well from only existing client recommen

19、dations that these checks just add to our non-productive time, which is increasing year on year. Survey respondent, England, UKFIGURE 1: The benefits of client due diligence (CDD)1 No discernible benefit 2 Very little benefit 3 Neutral 4 Quite beneficial 5 Clear and significant benefit Dont knowAddi

20、ng value to your client relationships by ensuring you hold all relevant informationHelping to create a better society by combatting economic crimeProtecting the reputation of your businessAvoiding regulatory sanction0%20%40%60%80%100%FIGURE 2: Benefits of enhanced due diligence (EDD)1 No discernible

21、 benefit 2 Very little benefit 3 Neutral 4 Quite beneficial 5 Clear and significant benefit Dont knowAdding value to your client relationships by ensuring you hold all relevant informationHelping to create a better society by combatting economic crimeProtecting the reputation of your businessAvoidin

22、g regulatory sanction0%20%40%60%80%100%6I dont think they perform any effective purpose in respect of stopping money laundering crimes. At present Companies House records are not particularly reliable and much of the information is self-reported and open to manipulation. Overall, a waste of time. Su

23、rvey respondent, England, UKEven where the risks are recognised, a majority of UKaccountants surveyed by the Consultative Council of Accountancy Bodies (CCAB) in the summer of 2020 disagreed with the proposition that KYC checks are proportionate to the level of risks that their clients are likely to

24、 pose (CCAB 2021a). Despite this, 70% agreed that accountants have an important role to play in preventing money laundering and economic crime in the UK, aIn my case and experience AML anti money laundering adds no value, it is pure compliance. Hence the objective is to get it done at minimum cost.S

25、urvey respondent, Latvia, Central and Eastern EuropeSadly, most of the regulation is aimed at large organisations/ very wealthy individuals but applies to the smallest clients just the same. The number of cases where large organisations bend the rules to get/keep large clients proves that the system

26、 is a waste of time in its current form. For small firms it is an irksome and unnecessary burden. Survey respondent, England, UKposition echoed by accountants from around the world.The proportionality of the work required on client due diligence is an area where members expressed concern. This bring

27、s into focus the need for the CCAB and by extension other global professional bodies to promote the importance of taking a risk-based approach to client due diligence work. While the money laundering regulations do require a certain amount of due diligence on any type of client, the extent of the wo

28、rk needed should generally be proportionate to the perceived risk that a client may pose in terms of money laundering or terrorist financing. CCAB 2021b70% AGREED THAT ACCOUNTANTS HAVE ANIMPORTANT ROLE TO PLAY IN PREVENTING MONEY LAUNDERING AND ECONOMIC CRIME IN THE UK, A POSITION ECHOED BY ACCOUNTA

29、NTS FROM AROUND THE WORLD.7KYC tools and themodern accountantWhile many of the documents relied on exist in paper format, digitalisation of the underlying information offers scope for alternative routes to identity verification.To understand accountants attitudes to KYC checks, it is helpful to look

30、 at how they actually carry them out. Of course, processes vary, and the largest multinational partnerships all operate fully online bespoke digital risk- management tools. In reality, the majority of practicesIn the Eastern Caribbean, access to online KYC tools is cost prohibitive especially for sm

31、all firms/sole proprietors, including access to appropriate software developers. Survey respondent, Grenada, Caribbeanworldwide are far smaller, and to the extent that they can use proprietary software at all will be restricted tooff-the-peg applications.For many of the smallest practices, we might

32、expect thatMuch easier to gather hard copy evidence and clientsare more willing with this manner of verification.Survey respondent, Trinidad and Tobago, Caribbeanthe legacy of generations of paper record keeping will be hard to overcome, especially in parts of the world where the adoption of digital

33、 tools is patchy. In accountancy, as in the wider economy, practices are changing.Many things that were once done face to face are now done online. That shift has been accelerated by theT&T is a third-world country and we are generally a little more than one generation (25+ years) behindfirst-world

34、countries in many things, including software, and it is always difficult to get local T&T assistance in the event of problems. Survey respondent, Trinidad & Tobago, CaribbeanCOVID-19 pandemic in many parts of the world. As face-to- face checks became all but impossible in many jurisdictions,guidance

35、 was updated to allow for alternative verification of identity (CCAB 2020). Equally, there are parts of the world where neither the digital information nor the tools to process it exist. In some areas, even if the checks were practical, theres little appetite for digitalised transmission and recordi

36、ng of information among the regulators.Even so, the indications from ACCAs survey work are that paper still forms the basis of most smaller practicesKYC procedures, even in Europe, with fewer than half (49%) of survey respondents using online tools in any form to carry out their checks, and 65% keep

37、ing all records manually with physical documentation. Around 20% have made the move to an entirely online process, while hybrid processes, mixing physical and online tools, are moreIn my environment, information about most potential clients cannot be found using the internet or other digital tools.

38、You have to use other non-conventional means, such as inquiry of the clients customersand others associated with the client in one way or the other. It is difficult to get paper-based orinternet-based information about institutions in this environment. Survey respondent, Liberia, AfricaThe local reg

39、ulators prefer paper-based documentation and going online is not common here in Ethiopia. Survey respondent, Ethiopia, Africa popular for verification checks than records maintenance, with 27% of practices using a blend for checks but only 14% opting for a blend of record keeping options.The prevale

40、nce of physical processes raises a number of questions. Is it possible for accountants to carry outthe checks properly without using online tools? And even if it is, could they do the checks more effectively using online tools? If online tools are potentially more effective for some practices, why a

41、rent they using them?In most jurisdictions the answer to the first questionwill of course be yes, it is legally possible to undertake the necessary checks without using digital tools.8FIGURE 3: Venn diagram showing the use of paper, ad hoc tools and proprietary software for KYC checks among responde

42、ntsPaper based/ physical only138Paper based/ physical only175KYC CHECKSRECORD KEEPING4116162269Online based ad hoc toolsProprietary softwareOnline based ad hoc toolsProprietary software2033829231Nonetheless, the practicality of doing so will dependupon the size of the practice undertaking the exerci

43、se how many new clients it takes on, how complex those clients are, and how many records need to be kept.While regulations are sometimes criticised for adoptingI already know most of my clients. They are family/ friends of existing clients. Having a computer check to verify their address and passpor

44、t doesnt provide any extra assurance. Survey respondent, England, UKa one size fits all approach to the requirements for evidencing identity, proportionality is a recurring theme of the FATF guidance, which allows for simplified due diligence, standard due diligence and enhanced due diligence (EDD).

45、2 A sole practitioner in a specialist field maintaining a small stable population of clients in a regulated industry whose identity and bona fides can be easily established by reference to physical copies of documents will be facing a very different challenge to a multi-partner firm with a number of

46、 offices and constant turnover of a mixed client base.For individuals, records are still typically based on physical documentation, which may not be readily available online without access to commercial databases. For incorporated businesses, on the other hand, online company registries are common a

47、nd in most jurisdictions offer a definitive record on which accountants can relyfor their checks. Accessing the registry online will typically be easier for the accountant and for the client than demanding sight of physical incorporation documents, whether the copies of records are kept digitally or

48、 printed out and physically filed.I am a very small practitioner and meet nearly all my clients face to face or by recommendation from existing clients so it is easy just to get the info from them then. Survey respondent, England, UKMy practice is based on one specialist sector and most clients are

49、present on media outlets all come to me by recommendation and are only UK England -based. Survey respondent, England, UKWhere more detailed enhanced due diligence (EDD) processes are required, or prospective clients have a high profile on social media, online background checks will offer a significa

50、nt potential advantage over paper verification processes, but typically these will also be relevant only to larger practices. There is, however, a recognised risk that determined criminals, seeking to legitimise their operations, will seek to engage with as large and well recognised a firm of accoun

51、tants as possible. This has led to an arms race between theSee FATF Recommendation 1 for applying a risk-based approach and Recommendations 20 and 21, respectively, for enhanced and simplified due diligence.9parties as compliance professionals at larger accountancypractices deploy increasingly sophi

52、sticated techniques to identify potential risks to their practices while, in parallel, criminals adopt a range of techniques to try to disguise their backgrounds and links.The issue is, however, that even if the prospective client is rebuffed by the largest and most prestigious practices, they will

53、simply move down the chain trying incrementally smaller firms until they find one that is unable todevote the same level of resource to background checks and will accept them as a client. Widespread availability of sophisticated digital monitoring tools would easethe burden on these firms and reduce

54、 the scope for criminals seeking to launder funds to gain access to professional advisers.Just seems like more admin for a sole trader who knows all their clients but useful for larger firms. Survey respondent, England UKJust as theres a spectrum of crime, so theres a spectrum of risk for firms, and

55、 the FATF repeatedly stresses the importance ofproportionate and risk-based responses to the threat. In practice, for accountants to implement a proportionate response properly, they need first to assess the risk accurately and understand their own ability to measure and counteract it.JUST AS THERES

56、 A SPECTRUM OF CRIME, SO THERES A SPECTRUM OF RISK FOR FIRMS, AND THE FATF REPEATEDLY STRESSES THE IMPORTANCE OF PROPORTIONATE ANDRISK-BASED RESPONSES TO THE THREAT.10Why might it matter?What are the risks?Can manual checks still cut it goodold-fashioned trust based on a handshake?Business is fundam

57、entally about trust in your counterparty: trust that they have both the ability and the intention to complete whatever agreement you and they come to.Over the centuries, various mechanisms have developed to accommodate changing patterns of business and investment. The place of trust based on a face-

58、to-face meeting, or the assurances of mutual acquaintances, has been replaced by objectively comparable third- party assurances, such as audits and bank guarantees, or mechanisms for legal recourse.Many of these are now so fundamental to society that individuals may not even be consciously aware of

59、them. Comparatively few people could name the laws in their country that protect minority shareholders against fraud or abuse, but the widespread level of shareholdings in listed companies in many jurisdictions speaks to the trust that people have in the system.based on acquaintance) do exist, altho

60、ugh it also concluded that they tend to be touchy, quick of temper, glum and moody (Adams 1927).Although the concept of the Good Judge was subject to a degree of additional research since then, which cast some doubt on whether there are individuals with a particular skill in swiftly judging characte