Irish Regulatory Update

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Guidelines for the Financial Sector (revised 23 June 2021)

The Central Bank published an update to its AML/CFT Guidelines on 23 June 2021. The Guidelines were amended to reflect changes made to Irish law by the EU’s Fifth Anti-Money Laundering Directive. The Central Bank has also updated its guidance on internal governance requirements, de-risking and data protection.

1. Key amendments to the Guidelines include:
   The requirement for Firms to apply specific enhanced due diligence (EDD) measures when dealing with a customer established or residing in a high-risk third country.
2. The broadening of the sources of information, which can be used by a Firm to identify and verify a customer’s and their beneficial owner’s (where applicable) identity.
3. Where applicable, the requirement for Firms to confirm that relevant information concerning the beneficial owner(s) of a customer has been entered onto the applicable beneficial ownership register before allowing transactions to be conducted on behalf of the customer or its beneficial owner.
4. The requirement to continue to apply EDD measures to a customer who is a Politically Exposed Person (PEP) for as long as is reasonably required.
5. Further guidance on the internal governance requirements set out in sections 54(7) and 54(8) CJA 2010.

Action: it is appropriate to review the AML/CFT policies of the ICAV to see if amendments are required in light of the revised guidelines. A recent update was already undertaken to reflect the actual updated legislation. The MLRO has confirmed that a review is underway and any updates will be tabled for approval at the Q4 board meeting.