AML Themed Inspections

Author:Ms Breeda Cunningham and Michele Barker
Profession:Dillon Eustace

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the "2010 Act") came into effect on 15 July 2010 and was amended by the Criminal Justice Act 2013 (the "2013 Act") (together the "Acts"). The Acts transpose the Third Money Laundering Directive (2005/60/EC) and it's Implementing Directive (2006/70/EC) into Irish Law. Designated persons under the Acts, including all credit and financial institutions (as defined in the Acts) are required to comply with their obligations under the Acts. On 25 February 2014, the Central Bank of Ireland (the "Central Bank") published its planned series of Themed Reviews and Inspections for 2014, as well as its 2014 Enforcement Priorities. It is clear from these publications that a key focus of the Central Bank is the area of anti-money laundering and counter terrorist financing ("AML/CTF") and the controls which designated persons are required to put in place to mitigate against the risk of AML/CTF. It is also clear from these publications that the Central Bank expects regulated entities to have appropriate systems, controls and procedures in place to meet with their regulatory obligations. Themed Reviews by the Central Bank The Central Bank's 2014 Programme of Themed Reviews and Inspections and Enforcement Priorities provide an opportunity for the Central Bank to assess compliance standards, where necessary, in "key risk areas" referred to on these lists. It should be noted that themed reviews and inspections may form the basis for future regulatory or enforcement actions where breaches are identified. During 2013, the Central Bank entered into 16 enforcement settlement agreements with regulated entities, with fines totalling €6,348,215 being imposed. The inclusion of the following within the areas for review and inspection are of particular relevance to the Funds Industry: AML/CTF and Financial Sanctions; and Corporate governance of Investment Funds and Fund managers. We understand that the Central Bank is currently conducting its themed AML/CTF inspections. AML/CTF Policy Requirements The following is a summary of the information which may be requested by the Central Bank as part of the themed AML/CTF inspections; List of documentation to be submitted to the Central Bank in advance of inspection An up-to-date organisation chart, which includes the names of directors and senior managers and the date of their respective appointments, together with a breakdown of those with day-today...

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