HM Revenue and Customs (HMRC), one of the UK’s 25 AML supervisors, had committed in the Economic Crime Plan 2019 to 2022 to implementing an enhanced risk-based approach to its supervision by March 2021 and to conduct an annual self-assessment of its supervision. The aim of such a self-assessment is to ensure that the HMRC itself is compliant and up to standards with the relevant AML/CFT regulations. The HMRC has now released its 2021 self-assessment report. The self-assessment revealed that HMRC’s performance is broadly aligned with relevant Money Laundering Regulations and best practice guidelines. At the same time, there is a scope for improvement. Some of the observations from this self-assessment are highlighted below.
HMRC is increasing the number of supervisory interventions it conducts each year. It is doing this by increasing staff numbers and enhancing productivity through better training. Indeed, HMRC has ensured adequate training of all staff. It will, however, roll out new projects to improve this training and make it more hands-on.
HMRC’s supervisory registration processes follow all regulatory requirements. However, there are some failings in processing registrations within 45 days. The authority has implemented new processes to improve this performance and has found that this change is already proving to be useful.
HMRC ensures that it shares all relevant information, wherever possible, with other domestic and international supervisors as well as law enforcement. It also ensures sharing of ML/TF information with businesses through guidance documents, webinars, online training, conferences, etc. It has further taken measures to enable prompt sharing of risk-related information with supervised businesses.
Overall, HMRC’s self-assessment suggests that the authority is sufficiently meeting regulatory obligations and best practice guidelines. As well, it is takin adequate measures to improve its supervision further. During the upcoming 12 months, HMRC will conduct another self-assessment and publish its results.
Source: HM Revenue and Customs