Combating Financing of Terrorism Guidelines Published by Central Bank of Ireland

The Central Bank of Ireland has issued an updated version of its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines, effective as of June 23rd, 2023. This move responds to changes made to Irish law under the EU’s Fifth Anti-Money Laundering Directive.

New Requirements

The revised guidelines introduce new requirements aimed at strengthening internal governance, de-risking, and data protection measures for financial institutions. Specifically:

• Financial institutions are expected to apply enhanced due diligence (EDD) measures when dealing with customers established or residing in high-risk third countries.
• The range of information sources that can be used to verify a customer’s identity and beneficial ownership has been broadened.

Enhanced Due Diligence Measures

The updated guidelines emphasize the need for continued application of EDD measures for:

• Politically Exposed Persons (PEPs) as long as reasonably necessary.

Internal Governance Requirements

The guidelines provide further clarification on internal governance requirements outlined in sections 54(7) and 54(8) of the Criminal Justice Act 2010, including:

• Confirmation that relevant information regarding beneficial owners has been entered onto applicable registers before allowing transactions to proceed.
• Enhanced due diligence measures when dealing with customers established or residing in high-risk third countries.

Accessing the Guidelines

Financial institutions are advised to familiarize themselves with the updated guidelines, which can be accessed online through the Central Bank’s website.