The impact of the fourth EU money laundering directive on the accountancy profession

Abstract

Purpose: This study was carried out to establish the impact of the changes in the Fourth EU Money Laundering Directive on the role of the Maltese accountancy profession. The objective of the study is to assess whether the local accountancy profession needs to implement new measures or controls to better combat money laundering in response to the new obligations of the Fourth EU Money Laundering Directive. Design: Semi-structured interviews were held with nine members of the local accountancy profession. Two other interviews were conducted with the Malta Institute of Accountants and the Financial Intelligence Analysis Unit. Findings: The study shows that the local accountancy profession already has several policies and procedures in place and only some minor amendments are required to be implemented for their systems to be in line with the Fourth directive. Consequently this directive is not expected to impact the Maltese accountancy profession in a radical manner. Furthermore, the attitude of the local accountancy profession towards anti-money laundering rules is significantly high, as almost all members had implemented the required policies and procedures imposed by regulation. Furthermore in some cases the accountancy profession went even beyond from what is required by rules and regulations to combat money laundering. Conclusions: The study concludes that along the years, the responsibilities of the accountancy profession have significantly changed. New obligations have been imposed on the profession as a result of new anti-money laundering regulations being enacted. It appears that the local accountancy profession is well-adapted to react to these new regulatory requirements. Moreover in response to new obligations set out in the Fourth EU directive, the majority of the members of the accountancy profession do not need to implement major changes to their money laundering policies and procedures. Value: The accountancy profession has a major role in combatting money laundering. If the local accountancy profession has robust internal policies and procedures in place, this will reduce the chances that criminals will use it as a channel to launder illicit funds. Hence it is of utmost importance that the profession keeps abreast to the new obligations of the anti-money laundering regulation.