The Legal Status of Auditors and Audit Organizations in the AML / CFT system
Abstract
Money laundering has become an increasing concern to law makers in recent years, principally because of its association with terrorism. Recent legislative changes mean that auditors may become state law enforcement agencies in the private sector. We examine this legislation in terms of the changing nature of the relationship between auditors and the state and the aggregate of supervision within which it is located. According to the Resolution of the Government of the Russian Federation of February 16, 2005 No. 82 [2], all lawyers, notaries and auditors are obliged to inform the state of any suspicious transactions of their clients.
Keywords: money laundering, terrorist financing, auditors, audit organizations.
References
[1] Federal Law No. 115-FL of 07.08.2001 (as amended on July 29, 2017) «On anti-money laundering (AML) and combating the financing of terrorism (CFT)
[2] Decree of the Government of the Russian Federation of February 16, 2005 No. 82 (as amended on July 8, 2014) «On approval of the Regulations on the transfer of information to the Federal Service for Financial Monitoring by lawyers, notaries and persons engaged in entrepreneurial activities in the field of rendering legal or accounting services»
[3] Federal Law No. 307-FZ of December 30, 2008 (as amended on May 1, 2017) «On Auditing Activities»
[4] Order of the Ministry of Finance of the Russian Federation of August 17, 2010 No. 90n (as amended on August 16, 2011) «On approval of federal auditing standards» (together with the «Federal Standard for Auditing Activity (FSA 5/2010).» Obligations of the Auditor to Consider Unfair Actions during the Audit», Federal Audit Standards (FSA 6/2010), duties of the auditor to review the compliance of the audited entity with the requirements of regulatory legal acts during the audit»)
[5] Regulation No. 375-P of the Bank of Russia of March 2, 2012 «On Requirements for Internal Control Rules of a Credit Organization with a view to AML / CFT
[6] F. Compin. The role of accounting in money laundering and money dirtying Critical Perspectives on Accounting - 2008, - p. 591-602
[7] M. Brivot, Y. Gendron. Beyond Panopticism: On the ramifications of surveillance in a contemporary professional setting - 2011, - p. 135-155