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Ireland’s Central Bank Found Gaps in Anti-Money Laundering Compliance Practices

Ireland’s Central bank has found that certain financial firms are lacking in regards to anti-money laundering compliance and terrorist financing obligations.

Firms listed in Schedule 2 of the criminal justice must comply with anti-money laundering and terrorist financing regulations. 

After a series of investigations and review meetings, it was discovered by the central bank that the boards of the financial firms fail to show responsibility for the issue and no proper measures are being taken to implement the compliances. The senior-level management and the board members have properly understood the requirements.

There was a lack of risk assessment activities and lack of proper documentation that assessed the money laundering background checked.  

“The culture and tone of any organization are set from the top. It, therefore, rests with the board of these firms to ensure that the necessary AML/CFT governance, risk assessment, policies and procedures, training, and awareness are embedded throughout the organization. While some firms may choose to outsource AML/CFT activities to third-party service providers, boards cannot outsource the responsibility for compliance.” said Seána Cunningham, Director of Enforcement and Anti-Money Laundering at the Central Bank.

The regulators have warned the firms that proper action will be taken against them if they do not start to take the AML implementations seriously. A letter has been sent to the board members of the firms and CEOs warning about the consequences they might face if they do not follow the recommendations provided. Cunningham said, “We also require all firms to review the content of this letter to ensure that they assess their own compliance with the issues identified.”

The senior-level management at the Central Bank will continue to engage with the firm to ensure that they properly address the issue and meet their compliance obligations.