Financial Crime World

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Financial Regulator Outlines New Guidelines for Anti-Money Laundering Compliance

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The Central Bank of Ireland (CBI) has published new guidelines outlining the expectations for financial institutions to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

Key Requirements

  • Firms must have an independent reporting line to the board, as mandated by Section 54(7) CJA 2010. Failure to do so may result in the CBI directing the firm to appoint such a position.
  • A whistleblowing policy is required, including procedures for internal reporting and staff training on compliance with AML/CFT requirements.
  • Firms must conduct individual risk assessments of customers and financial products, considering whether additional enhanced measures can be applied to reduce ML/TF risk before terminating the relationship.

Records and Documentation

  • Evidence of compliance with AML/CFT obligations must be retained.
  • Personal data must be processed in accordance with the General Data Protection Regulation (GDPR).

New Requirements

Customer Due Diligence

  • Firms are required to conduct regular customer due diligence, including verification of identity and address.

Transaction Monitoring

  • Firms must monitor transactions for suspicious activity and report any findings to the CBI.

Suspicious Transaction Reporting

  • Firms must have procedures in place for reporting suspicious transactions to the CBI.

Training and Governance

  • Firms are required to conduct regular training on AML/CFT regulations.
  • Employees must understand their roles and responsibilities in relation to AML/CFT compliance.

Next Steps for Firms

To comply with the new guidelines, firms should:

  • Review their governance arrangements, processes, and policies
  • Conduct regular training on AML/CFT regulations
  • Ensure that employees understand their roles and responsibilities
  • Implement a whistleblowing policy and internal reporting procedures

The CBI’s Irish Financial Services Regulatory Group is available to provide further guidance and support to firms navigating these changes.