AML Update: Do You Need To Register With The Central Bank?

Author:Ms Orla O'Connor, Robert Cain, Cormac Kissane, Glenn Butt, Aiden Small and Maedhbh Clancy
Profession:Arthur Cox
 
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Firms providing certain services in Ireland (including lending) from an Irish base will now, unless they are already regulated by Central Bank, have to register with the Central Bank. This new registration requirement arises under the Irish Act which transposes the Fourth Money Laundering Directive (MLD4) into Irish law.

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 is now in force in Ireland. Taking effect on 26 November 2018, it transposes the rest of MLD4 into Irish law by amending the existing 2010 Act (the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010).

It has also created a new registration obligation for certain unregulated firms.

It is important to note that the new registration requirement does not create new categories of "designated persons" for the purposes of Irish anti-money laundering (AML) or counter-terrorism financing (CTF) law. The unregulated firms affected by the new registration requirement have already been "designated persons" for AML/CTF purposes for several years, and should already have an AML/CTF framework in place. However, they will now need to register with the Central Bank and confirm compliance with Irish AML/CTF legislation.

REGISTERING WITH THE CENTRAL BANK - WHO IS IN-SCOPE?

To be in-scope, a firm (or an individual or an Irish branch) needs to be offering one or more of the services set out below in Ireland, from an Irish base. These services are referred to by the Central Bank as 'Schedule 2 activities'.

SCHEDULE 2 ACTIVITIES

Lending (in our view, there is a strong argument that the Central Bank expects loan buyers who are, for the time being, unregulated, to come within point 1) Financial leasing Payment services as defined in the Payment Services Directive Issuing and administering other means of payment (such as travellers' cheques and bankers' drafts) insofar as not covered by 3 above Guarantees and commitments Trading for own account or for account of customers in (a) money market instruments (cheques, bills, certificates of deposit, etc.), (b) foreign exchange, (c) financial futures and options, (d) exchange and interest-rate instruments, and (e) transferable securities Participating in securities issues and providing services relating to such issues Advising undertakings on capital structure, industrial strategy and related questions and advice as well as services relating to mergers and the purchase of undertakings...

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