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Financial crime compliance in professional services: Moving beyond the three lines of defence
Journal of Financial Compliance,
5
(3),
267-274
(2022)
Abstract
The role of professional services in the fight against Financial Crime is as integral as that of the financial sector. Often viewed as ‘Gatekeepers’, professional services including Accountants, Auditors, Lawyers and Tax professionals have a significant role to play in combatting the flow of illicit funds through the world’s economies. This paper explores how professional service organisations, in particular within the Accounting profession, approach compliance with complex and fast-changing rules as they respond to expectations placed on them by regulators, clients and other stakeholders. Examining the traditional ‘three lines’ model for compliance frameworks, the author asks the question, ‘Is it time to move beyond the three lines of defence?’ As part of a broader approach to Enterprise Risk Management consideration is given to the role of education and empowerment as ways of enabling professionals meet their obligations with these key non-negotiable compliance requirements.
Keywords: Professional services; financial crime; compliance; 3 lines of defence; enablement; empowerment
The full article is available to subscribers to the journal.
Author's Biography
Catherine Vaughan is a Partner in EY Ireland and is currently serving a secondment to EY’s Global organisation where she serves as EY’s Global Financial Crime, Ethics and Compliance Leader, an in-house role focusing on legal and regulatory compliances impacting Member Firms. A Chartered Accountant by qualification, Catherine is also a Fellow of the International Compliance Association. Her experience as an external auditor together with over 15 years’ experience in risk management form the basis of Catherine’s current role specialising in financial crime. Her responsibilities include the design of EY’s Global Financial Crime compliance programs including oversight of Member Firm’s compliance monitoring and reporting. Catherine’s focus on enabling and driving a culture of compliance stems from her commitment to professional ethics and integrity, in her words ‘the bedrock of the professional services’.
