Ireland: Observations From Recent AML/CTF Themed Inspections


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 "Act"). The Act transposes the Third Money Laundering Directive (2005/60/EC) and it's Implementing Directive (2006/70/EC) into Irish Law. Designated persons under the Act, including all credit and financial institutions (as defined in the Act) are required to comply with their obligations under the Act.

On 25 February 2014, the Central Bank of Ireland (the "Central Bank") published its planned series of Themed Reviews and Inspections, along with its Enforcement Priorities. This included the Central Bank's intention to conduct a further round of themed inspections in 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.

The Central Bank commenced its themed AML/CTF inspections during the summer of 2014 and is due to issue a Dear CEO letter shortly setting out its key observations. In the meantime, Dillon Eustace has seen a number of findings letters and we have noted the following general observations.

General Observations

The following are the general observations noted from the recent round of Central Bank themed AML/CTF inspections.

Risk Management

  • Firms must ensure that an appropriate detailed, documented, AML/CFT risk assessment of the business is carried out and that supporting evidence of decisions made is available for review by the Central Bank during any follow-up inspection of the Firm. This risk assessment should be reviewed and regularly updated if necessary to address new or emerging risks.

Corporate Governance

  • The Board at the Firm must ensure appropriate engagement and challenge by the Board, and that this is satisfactorily evidenced to demonstrate to the Central Bank that it is meeting the requirements of the Act.
  • The Board at the Firm must ensure that it can demonstrate to the Central Bank that staff undertaking AML/CFT duties on behalf of the Firm have received appropriate AML/CFT training.
  • Specifically relevant to Fund Boards –
    • They must ensure they implement measures to obtain appropriate oversight of the Administrator's policy, procedures and practices to ensure that they appropriately mitigate the AML/CFT risks of the Fund; and
    • Management information reported to the Board should be comprehensive to provide the Board with appropriate oversight of all activities being conducted by the Administrator on their behalf.

Customer Due Diligence

  • The Firm must ensure that it has a robust process in place to ensure compliance with the requirements of Section 33 of the Act including Section 33(4) of the Act, which deals with non-face to face customers that are individuals. This should be supported by appropriate policies and procedures.
  • The Firm must ensure that appropriate CDD records are maintained for all customer files and should consider reliability testing to ensure adherence to CDD Procedures.
  • The Firm must ensure that it has appropriate procedures and controls in place to ensure compliance with Section 33(8) of the Act for any customers that have failed to provide adequate CDD documentation. The Central Bank reminds Firms that they are obliged to complete CDD as soon as practicable and that Firms need to define what they mean by as soon as practicable so that they have a clear understanding as to when the point of failure has been reached and consequently when Section 33(8) of the Act applies.
  • The Firm must ensure that it has effective policies and procedures in place for the management of PEPs, including a process for carrying out enhanced customer due diligence and obtaining senior management sign off of PEP relationships. The Central Bank's focus here is that where a Fund delegates PEP sign-off to the senior management of the Administrator, then this needs to be clearly documented in the Fund's AML/CTF policy.
  • The Firm is only permitted to enter arrangements with a relevant third parties where it is satisfied that the letter of reliance provided by the relevant third party meets the requirements of Section 40 of the Act.
  • The Firm should review reliance letter arrangements to determine if any arrangements require remediation. In any cases where deficiencies are identified the Firm must take the necessary steps to ensure compliance with the Act.

Suspicious Transaction Reports ("STRs")

  • The STR procedures should be updated to provide clarity, for all staff of the Firm, regarding their reporting obligations. Procedures should outline what constitutes a suspicion and outline the steps a staff member should take if they identify a suspicion.
  • Firms must ensure they have effective on-going monitoring policies and procedures in place to identify STRs.
  • Firms must review and validate any monitoring systems and/or reports to ensure that they are meaningful and effective.
  • The AML Policy for Fund Boards must include the procedure to identify and report suspicious activity independent of the Administrator. This should include –
    • The process to raise and escalate STRs to the Firm's MLRO;
    • A timeframe within which reports should be made to the authorities;
    • The offences and penalties for failure to report and the definition of 'tipping off and the penalties associated with this offence and measures to be taken to avoid 'tipping off'; and
    • The Firm should be in a position to demonstrate that it has given due consideration to its own reporting obligations and that a mechanism is in place to follow up investigation with the Administrator to enable the Firm to reach its own determination.


  • The Firm must confirm that all persons involved in the conduct of the business are instructed on the law relating to money laundering and terrorist financing and are provided with on-going training.
  • Adequate training records for all staff need to be retained.
  • The Firm must ensure that all staff adhere to the procedures of the Firm.

Next Steps

Investment Funds and their service providers should note the above general observations and determine if amendments are required to their respective AML/CTF policy and procedures. In any event it should be noted that the AML/CTF policy and procedures should be reviewed at least on an annual basis. There is also a duty to conduct training at least on an annual basis.

The Regulatory and Compliance team in Dillon Eustace can assist you in reviewing and updating your AML/CTF policy and procedure where necessary. We can also assist you by delivering the annual AML/CTF training either at your premises or at Dillon Eustace's premises. Please see our contacts details on the covering page.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions