ABSTRACT
This chapter comments on whether and to what extent the accountants and auditors (AAs) in the Europe Union (EU) are protected when they blow the whistle and report suspicious activity in the context of anti-money laundering (AML). Currently, only four EU Member States have dedicated whistle-blower legislation – the United Kingdom (UK), the Netherlands, Hungary and Romania. According to the International Federation of Accountants (IFAC) Code of Ethics, audit independence comprises two elements: independence of mind and independence in appearance. The regulation is intended to address some of the specific threats to auditor independence, which have long vexed the profession and regulators, and exercised academic commentators. After a period of intense lobbying, which resulted in the removal of some of the more controversial proposals, large professional firms have greeted the regulatory changes with some reserve. The Federation of European Accountants (FEE) notes that 'use of a Regulation should have resulted in a more certain and harmonised EU audit regulatory environment'.
