Transcript Document

DUBLIN CORK
BOSTON NEW YORK TOKYO
Understanding the New Anti-Money
Laundering Requirements in Ireland
www.dilloneustace.ie
Understanding the New AML Requirements in Ireland
Implementation of the 3rd Anti Money Laundering Directive
Key changes arising from new proposed legislation
Changes in the Financial Regulator’s role
Status of the Guidance Notes
Reporting requirements/New offences
Practical steps to consider
Q&A
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Understanding the New AML Requirements in Ireland
Implementation of the 3rd Anti Money Laundering Directive
2005/60/EC
Heads of Bill Published 2008
Criminal Justice (Money Laundering and Terrorist Financing) Bill 2009
Published July 2009
Second stage debated before Dail Eireann October 2009
Final passage of the Bill through Dail Eireann February 2010
Expected to enacted by mid March 2010.
When enacted various sections of Criminal Justice Act 1994 will be
repealed.
www.dilloneustace.ie
Understanding the New AML Requirements in Ireland
Key changes arising from new proposed legislation
Introduction of Risk Based Approach
Customer Due Diligence
Reliance on Third Parties
Training and Procedures
Record Keeping
Authorisation of Trust or Company Service Providers
www.dilloneustace.ie
Understanding the New AML Requirements in Ireland
Key changes arising from new proposed legislation
Introduction of Risk Based Approach
3rd AML Directive – may determine the extent of the Customer Due
Diligence measures on a risk sensitive basis depending on type of
customer, business relationship, product or transaction.
Bill – shall obtain information reasonably warranted by the risk of money
laundering or terrorist financing on the purpose and intended nature of a
business relationship with a customer prior to the establishment of the
relationship.
www.dilloneustace.ie
Understanding the New AML Requirements in Ireland
Key changes arising from new proposed legislation
Introduction of Risk Based Approach
Identify Money Laundering and Terrorist Financial Risks by looking at:
Customers
Products
Channels
Geographic Location
Categorise Risk
High
Medium
Low
Risk Categorisation determines level of Customer Due Diligence required.
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Understanding the New AML Requirements in Ireland
Key changes arising from new proposed legislation
Customer Due Diligence (CDD)
When does it apply?
3 levels of CDD
Requirement to identify Beneficial Owner
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Understanding the New AML Requirements in Ireland
Key changes arising from new proposed legislation
CDD – When does it apply?
prior to establishing a business relationship;
prior to carrying out occasional transactions which individually or as a
series amount to €15,000 or more;
prior to carrying out a service where there are reasonable grounds to
believe there is a real risk of money laundering or terrorist financing;
prior to carrying out a service where there are reasonable grounds to
doubt the veracity or adequacy of existing customer identification
information.
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Understanding the New AML Requirements in Ireland
Practical steps to consider:
Gap analysis;
Client Risk Assessment – Risk based procedures;
Updating policies and procedures;
Training – including refresher training on a regular basis.
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Follow Up
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information on this topic please contact:–
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Contact
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