The third EU Anti-Money Laundering ('AML') Directive has been transposed into the Irish law, with effect from 15th July 2010, by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (‘2010 Act’).
The 2010 Act provides for the supervision of all ‘designated persons’ under the Act for their compliance with the obligations included therein (e.g. carrying out customer due diligence and on-going monitoring, reporting, record keeping, establishing policies and procedures, training of staff etc.). For member firms and members in practice of the accountancy bodies, the AML supervision will be carried out by the regulatory function of the relevant accountancy body – for Chartered Accountants Ireland members, this function is carried out by Chartered Accountants Regulatory Board (CARB).
A number of queries have been raised in this regard, in particular around the establishment by the Department of Justice and Law Reform of its AML Compliance Unit, the interaction of this unit with the other AML supervisors (referred to in the 2010 Act as ‘Competent Authorities’) and whether there is a requirement for the Institute’s member firms/members in practice to register with this unit.
Establishment of Department of Justice and Law Reform AML Compliance Unit
In accordance with the provisions of the 2010 Act, the Department of Justice and Law Reform has established an AML Compliance Unit to monitor various ‘designated persons’ under the Act, including:
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Accountants who are not members of a designated accountancy body (‘non-qualified accountants’);
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Tax advisers (other than those who are members of a designated accountancy body, the Law Society or the Bar Council of Ireland);
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High value goods dealers;
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Private members’ gaming clubs;
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Trust and Company Service Providers (TCSPs) who are not members of a designated accountancy body, the Law Society or the Bar Council of Ireland.
The Department has recently issued information notices and letters to various ‘designated persons’ under the 2010 Act, including accounting firms, in particular with regard to the provisions relating to TCSPs and the requirement to register.
Members of the Institute who are trust and company service providers do not need to register separately with the Department’s Compliance Unit for this activity.
Certain members, as discussed below, will however, need to register NOW with CARB.
Practising Certificate Holders
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Member firms or members in practice who provide trust and company services as part of their general accountancy practice will be supervised for anti-money laundering compliance under the practicing certificate regime. There is no requirement for these member firms/members in practice to register with CARB.
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Member firms or members in practice who have a separate company providing trust and company services will also be supervised for AML purposes in relation to the activities of such companies, but they must notify CARB at carb@carb.ie by 30 July 2010.
Members who are not Practising Certificate Holders
Trust and company service providers whose principals/directors are members of the Institute but who are not holders of a practising certificate will generally also be supervised for compliance with the 2010 Act by CARB, though there may be exceptions such as where the company is supervised for AML purposes by the Financial Regulator, the Law Society of Ireland or the Bar Council of Ireland. In cases of doubt about the appropriate ‘competent authority’, please contact CARB directly.
Such members must notify CARB at carb@carb.ie by 30 July 2010.
Further clarification is being sought from the Department regarding the new legislation and a formal registration process is currently under development. Additional information will soon be available at www.carb.ie.