News

Grace Tighe, CASSI Chairperson, explains the group’s three pillars and how they will underpin the future of CASSI.  As the pandemic restrictions lift and many Chartered Accountants Ireland students start to see the light at the end of the busy season tunnel, we are looking forward to what will come in the summer months.  With the new year has come a new CASSI Committee, elected on Wednesday 16 February. Working as Education Officer for the past year, I was delighted to be voted in as chairperson for the coming term. During the AGM, previous officers passed advice, tips and tricks to the newly elected committee members to set them up for the year ahead.  A new committee means a new set of goals and ideas. As a committee, we discussed how we would best like to support and help Chartered Accountants Ireland students in 2022. In doing so, we established three pillars to underpin all of our activities: diversity and inclusion, One CASSI and the future of work and study.  Diversity and inclusion In the coming year, CASSI would like all members to feel represented and will ensure that the contributions and perspectives of different groups are valued and celebrated. We are working with the Institute’s new LGBTQ+ network, ‘Balance’, to bring greater awareness and promotion of LGBTQ+ inclusion across the student body.  One CASSI Our One CASSI pillar focuses on ensuring all students, regardless of location or entry method, have a chance to engage in CASSI events and meet fellow members. This year, the society is looking forward to organising many more in-person events due to the removal of restrictions.  A big focus of the committee this year is the CASSI weekend away. This event brings students from all regional societies together. From tales of times past, it is always a great weekend.  Future of work and study Our final pillar for the CASSI society of 2022/23 is the future of work and study. This pillar focuses on supporting students in educational delivery and examinations as they navigate the world of online learning.  Over the past two years, the online delivery of educational material has enabled students to have more control over when and how they study. However, as with most things, the element of face-to-face social interaction with peers has been missing for the past two years. This is something the society and the Institute are working on reviving.   CASSI will continue to work with Barden, the group’s sponsor, to host webinars, one-to-one sessions and some in-person events aimed at helping students plot out the next phase of their career and equipping them with the knowledge and tools needed to take their next steps after their training contract.  As always, the CASSI Committee is here to support and help students in any way we can. Please reach out to us on our social media channels.

To keep up with the criminals who funnel illicit money through legitimate banks, financial institutions need to do more by embracing new technologies, collaborating and communicating. Deirdre Carwood and Laura Wadding explain.   As criminals become increasingly sophisticated, they find new ways to channel illicit money through legitimate banks. They’re managing to stay one step ahead of the industry in the process. This has a potentially significant impact on Ireland, given its role as a dynamic international financial services hub: a leading player for wholesale banks and investment funds, and part of a heavily intermediated international financial landscape.  Over the past two decades, financial institutions based in Ireland have spent a lot of time raising their standards to comply with increasing anti-money laundering (AML) regulations, keeping customer documentation up to date, and remediating issues as they arise. Every year, financial institutions invest a large proportion of their costs into maintaining this regulatory compliance – but simply complying with regulations doesn’t prevent a bank from becoming a victim of crime. And the fight against financial crime has become fully digital, following the changed working models after COVID-19 leading to an accelerated shift towards fully digital environments.  But have the banks’ systems kept pace? Are their internal control frameworks strong enough to track suspicious data points and highlight transactions that seem out of the ordinary? A human employee could compare a passport photo with the person standing before them waiting to make a deposit in the physical world. Face-to-face contact and human interaction have been very effective in identifying suspicious activity in the past.  However, we rely on algorithms to spot that activity and mark it as unusual in the digital world. For example, if an account with regular monthly lodgements of €10,000 suddenly has deposits of €150,000 at a time, that’s a potential red flag. This kind of detection technology can be costly, and large financial institutions can be slow to adapt.  Another way for financial institutions to detect potential illicit financial flows and identify emerging trends in criminal activity is through information sharing. However, the data-sharing forums currently in place are not fit for purpose, and they need to be much broader in scope for today’s digital world.  Retail banks, fintechs, regulators, accountancy practices, legal firms and law enforcement all have discussion forums, but there is no single central utility gathering information, detecting patterns and developing typologies of illicit finance activity.  This matters for two reasons: first, without a unified forum, the lack of up-to-date near-real-time sharing of information between all stakeholders is causing delays in investigating suspicious sources of money.  Secondly, it is difficult to measure the cost of financial crime, specifically illicit finance, to the industry and the economy. In an Irish context, when the Garda National Economic Crime Bureau reports instances of financial crime to the Central Statistics Office, this tends to appear as one number, meaning there is no breakdown of illicit finance. Similarly, financial institutions may be obliged to report issues around illicit finance to the Central Bank of Ireland; still, there is no aggregate data shared in the appropriate circles.  But if data can help the fight against financial crime, it can also be a potential hindrance. Under the General Data Protection Regulation, organisations are only entitled to collect the information they need to retain based on the business requirements. The more personal information a bank holds about its customers, the greater their obligations are from a data protection perspective. This is a tricky balancing act: how far should a bank go to demonstrate that it knows who its customers are? The delicate line between adequately addressing the threat of illicit finance and respecting the individual’s right to data privacy is set to remain a vital issue. Deirdre Carwood is Partner of Financial Advisory at Deloitte. Laura Wadding is Partner of Risk Advisory at Deloitte. Five steps to collectively tackle illicit finance  The ecosystem should take five critical steps in response to the threat. 1. Improve alignment  A greater alignment of preventative effort across the public and private sector, concentrating on high-value activities, is paramount. This should include better sharing of information and intelligence, such as emerging typologies and tactical data sets, which would sharpen the regulated sector’s ability to identify suspicious activity. Anecdotally, some banks report that as little as 1% of transaction-monitoring alerts identify information that warrants reporting to national intelligence authorities, suggesting significant effort and capacity in the system is arrayed against activity that does not lead to outcomes.  2. Renew the focus on effectiveness  In some cases, legislative and regulatory frameworks or their interpretation inhibit the ability to align resources to where it’s needed most. It is essential that financial crime risk management frameworks are implemented by organisations and regulated to prioritise the effective delivery of outcomes rather than focusing on technical compliance as an end in itself. There are encouraging signs that innovative approaches are being considered and progress is being made, such as within the Deloitte US’s recent consultation on enhancing the effectiveness of Anti-Money Laundering (AML) programmes.  3. Increase collaboration  The adage “the whole is greater than the sum of its parts” is undoubtedly true of the illicit finance regime. Improved collaboration could also enable global public sectors to leverage the capacity and capabilities of the private sector to help drive a more disruptive agenda and secure better outcomes. As an example, international law enforcement could look to the approach taken by the US Department of the Treasury and Department of Justice (DoJ). The DoJ has worked with the private sector for the best part of a decade, bringing in forensic accountants, open-source intelligence analysts and more, which has enabled them to make a dramatic step-change in the seizure of criminal assets.  4. Embrace new technologies  While the proliferation of emerging technologies, including new payment platforms, cryptocurrencies, and Digital ID, represents criminal opportunity, it also opens the ecosystem to start designing out vulnerabilities. Emerging analytics and encryption technologies will allow us to “see more” in data and enable new kinds of data sharing in compliance with overarching privacy principles.  5. Make broader connections  Illicit finance requires all sectors to play a strong and active role. This goes beyond financial services, governments and law enforcement. Social media, internet service providers, and telecommunication companies within the global corporate sector can all be vectors through which fraudsters access their victims. All have a preventative role to play. The challenge is significant and requires considerable reform of the current system. However, we know that everyone involved wants the same outcome: preventing crime, protecting citizens and customers, and disrupting criminals. For leaders in both governments and industry, the task is to harness their shared ambition and go on this transformational journey together.

The cautiously optimistic Budget 2022 was announced by the Minister for Finance in October. Maud Clear, Tax Manager at Chartered Accountants Ireland, outlines what you should know. Budget 2022 marked the first budget in almost a quarter of a century where Ireland’s commitment to its coveted 12.5% corporation tax rate could not be stated, but only for those with global consolidated revenues exceeding €750 million. The uncertainty within the Irish corporation tax base brought about by international tax reform has drawn greater focus to the growth of domestic business.    The Minister for Finance framed his Budget Day speech in a tone of cautious optimism, noting the need to “always prepare for the worst, while striving for the best”. This followed substantial improvements to the country’s estimated deficit for 2021 and 2022 in the days before 12 October, and the reality of rising inflationary pressures and a national debt of €50,000 for every person in the country.  Employment The Minister announced the indexing of income tax bands, and a number of tax credit increases in an effort to address the increased living costs. This is a welcome measure not only for employees, but also employers seeking to attract and retain talented employees. Further welcome developments for employers include the extension of the Employment Wage Subsidy Scheme until April 2022, with certainty being provided over the subsidy rate payable and when the reduced rate of employer’s PRSI will change. On that topic, a general point of discussion was the potential for increases in employer’s PRSI to be forthcoming in the Budget in light of a significant deficit in the social insurance fund. The Government’s cost benefit analysis has obviously recognised the CCAB-I’s assertions that employer’s PRSI increase are prohibitive to job creation and no changes were announced in this area. Budget 2022 also provides increased relief for 30% of electricity, heating and broadband costs incurred while working from home. The success of this measure will be determined by how accessible taxpayers find the claims process.   Supporting entrepreneurs Described as the “backbone of our domestic economy”, entrepreneurs and the wider business community were accredited with creating and supporting employment. In an effort to support SMEs, the Government announced the extension and improvement of the Employment Investment Incentive (EII) scheme to entice investment in a company’s start-up years. The EII scheme is a well-intentioned relief, with employment creation at its focus; however, the impact of EU law has seen the number of qualifying companies falling to just 37 in 2018. The corporation tax relief for certain start-up companies under section 486C TCA 1997 will now be available for up to five years, instead of the current three years. The current estimated average cost of this relief per job supported is €384, so there is value in expanding the relief relative to the cost of providing unemployment supports.  A tax credit for the digital gaming sector was also announced in an effort to create employment, as Irish growth in this area lags behind global trends. A corporation tax credit at a rate of 32% will be available on eligible expenditure of up to €25 million on the design, production and testing of each digital gaming project. This credit is being introduced subject to a commencement order, as European State aid approval is required.  The policy aims of each of these announcements is quite clear. It remains to be seen whether administrative complexities prove to be a barrier to access.   Greening the tax system There were a number of measures announced by the Government in the drive to further decarbonise the economy and meet Ireland’s commitment to reduce carbon emissions by 7% next year. These included a €7.50 increase in the rate of carbon tax per tonne of CO2, amendments to accelerated capital allowances schemes, as well as an extension of the BIK exemption on electric vehicles until 2025, albeit for reduced values.  While the direction of these policy measures is seen as positive, there is a general feeling of missed opportunity among a business community with sustainability at the top of its agenda. Ireland’s enterprise sector accounts for over 13% of the economy’s total emissions, and Budget 2022 does very little to incentivise those businesses in helping to achieve annual emissions reductions the Government has committed to over the next decade.  Green tax policy must do more to mobilise business in making a meaningful dent in carbon emissions. International tax reform Budget 2022 confirmed the well-signalled introduction of new interest limitation rules and amendments to the anti-hybrid rules in line with the EU anti-tax avoidance Directive. The legislation for both has been set out in the Finance Bill, following a series of public consultations and stakeholder input. The interest limitation rule will restrict a company’s net borrowing costs, but Budget documents indicate that these rules will not be revenue raising. A de minimis threshold will apply where net interest deductions are below €3 million. The introduction of the new 15% minimum effective tax rate was discussed by the Minister in his Budget Day speech. He notes that this rate will still be less than many of our key competitors but gives little consideration to the impact of the allocation of profits to market jurisdictions. The Parliamentary Budget Office has raised concerns over the projected €2 billion impact of these measures, describing it as “a very uncertain estimate”.  The pace at which international tax reform is taking place suggests that Budget 2023 could include details on the design of the OECD’s two pillar plan in Irish tax law. 

Your exams are over and your next lectures aren’t until the autumn – what should you do with this in-between time? Grace Tighe has a few suggestions. Working full time and studying on the side can be tough. It is important to make the most of your time off between the end of your exams and the start of your new lectures. Here are my top tips on what you can do during this time to ensure you are refreshed and prepared heading into another year.  Take a break  You have spent the year working and studying – you have put in a lot of hard work. Take this time to refresh and recharge the batteries. Organise to meet up with friends, enjoy social nights out, or pick up a hobby you haven’t given attention to in a while. Do whatever helps you unwind and relax.  Downtime is important for our brain health. Research has found that taking breaks can improve your mood, boost performance and increase ability to concentrate. If we don’t take this time to give our minds a chance to pause and refresh, our brains won’t work as efficiently, and burnout can occur. Keep up-to-date with current affairs  Discussing issues topical in the current business environment is a great way to show competence in exams. You can get this information from many sources: newspapers, news bulletins on the radio, podcasts, YouTube videos or online subscriptions.  Personal suggestions of mine would include the News Briefing podcast from the Financial Times, The Daily podcast from the New York Times (less of a focus on finance but excellent for current affairs) and Chartered Accountants Ireland’s The Bottom Line magazine (especially important on the run up to exams) and the Accountancy Ireland podcast.  You may like to listen to a podcast on your daily commute or prefer to read a newspaper at the weekend. There is no silver bullet. Find out what works best for you.  Organise your notes  Before starting lectures again, find a day or two to go through your old notes and folders, whether that be from previous Chartered Accountancy exams or from university. Clear out rough answers and additional material that you don’t need. Focus on having a solid set of notes that you can draw on in your studies.  Make a plan  Like organising your notes, take a day to set out a rough plan for the next term of lectures. I would recommend adding your lecture timetable to your work calendar. This will ensure you don’t forget when lectures are on, but also allows your work colleges and managers visibility as to the evenings you must attend lectures and can’t work late. Schedule in time at the weekends to watch your lectures and seminars, as well as time for breaks and to get out for some exercise.  In summary, use this time to recharge the batteries, get some exercise and plan ahead for the new academic year. Grace Tighe is an audit executive in PwC and the CASSI Education Officer.

At the end of your Chartered journey, the training and studying will all be worth it when you can finally become a member. How do you gain membership and what are the benefits once you have it? You’ve worked hard over a number of years – you’ve studied and trained and put in the hours so you can start your career as a Chartered Accountant. There are a few steps you have to go through first, however.  Step 1: Complete FAE Successfully complete and pass your FAE exams. This could take you a few attempts, but you will get there. Step 2: Complete your CA Diary Membership will only become available to you once you have finalised your CA Diary. The resources page on the Chartered Accountants Ireland site contains all the information you need. You can also contact the support team on trainingsupport@charteredaccountants.ie or ring us on +353 1 637 7202. Step 3: Complete training You may have passed the FAE but have not yet completed the required term of training. It’s necessary for you to complete the entire term of your contract, or the required training period if you are on the Flexible Route. When you have completed those three steps, you’re ready to apply to become a Chartered Accountant. For queries about admission to membership, please contact admissions@charteredaccountants.ie or visit the Admission to Membership website. Benefits of membership Membership of Chartered Accountants Ireland means that you will belong to a strong, supportive and sociable community of more than 29,000 colleagues and friends on the island of Ireland and around the world. Membership is the beginning of a lifelong relationship with your Institute, your fellow members and a journey we look forward to meeting you on again and again. Members can use the Associate Chartered Accountant (ACA) designation after their name, allying them with peers around the globe. The designation and qualification are internationally recognised passports to a varied, challenging, rewarding and flexible career. Building connections As you progress through your career, you will see the importance of networking. The people you meet will help and support you in many ways and you will do the same for them. Professional advice, brainstorming and new friends are all out there and the Institute can help you make contact. There are a number of very active networking groups, committees and district societies with whom you can build business, educational and social relationships. The learning never stops We all value professional development and understand the importance of keeping abreast of new information and issues within our profession. The Institute offers a wide range of continuous professional development that will ensure you keep your skills and competencies up-to-date so you can provide the highest quality services to your clients and employers.  Once you are admitted, the Member Experience team is there to support members in all aspects of their career and professional development. They provide career coaching and mentoring and  technical skills development through CPD and our other specialist qualifications. It might feel like qualification is ages away right now, but your time as a trainee and student will pass quickly, and when you are admitted to membership, the sky is the limit.

Clare Monaghan, Chair of the Chartered Accountants Student Society Ireland, outlines what you can expect while you continue your training. Like most students, I started my journey of becoming a Chartered Accountant through a graduate trainee role, enthusiastic to learn but naïve to what was ahead of me. Three years on and I am now approaching the final hurdle – my FAEs, and I know first hand how a little guidance on my training contract as I progressed through my education would have gone a long way. The beginning The first fortnight of a training contract usually consists of trainees going through an induction, outlining the dos and don’ts with a dash of double entry. If you are lucky enough, you might even be spoiled with some social activities which creates a camaraderie between you and the other trainees.  You will have also gained access to the ‘Learning Hub’ – home to all lecture and webinar recordings, accompanied by various documents such as the Competency Statement, PowerPoint presentations and many supplementary handouts to help you through your studies. Also, a large box of textbooks arrives at your front door at the start of each academic cycle, preparing you for the year ahead.  Like in those first few months of your contract, organisation is key when it comes to progressing through your studies. Adding lecture dates to your diary along with reminders helps you prepare for the week ahead. There are pre-class recordings that must be watched before lectures. This is highlighted on both the Competency Statement and timetable, and it’s important to schedule that in throughout your training. CA Diary During the preliminary stage of your training contract, you were introduced to your CA Diary and diary mentor. The CA Diary is a running log of all the exciting opportunities you encounter throughout your training contract, thus confirming that you are gaining relevant work experience by meeting the essential competencies in areas of financial reporting, business environment and professional values. Your mentor will continue to review your diary entries every six months, validating your success in attaining the relevant experience providing valuable and constructive feedback.   My day-to-day work involves local and central government audits, north/south body audits and public reporting. No training contract will be identical, and like many of my student peers working for the Big 4 or smaller firms, we experience a different hurdle to jump each day; however this provides great writing for the  CA Diary.  Student societies With so many students carrying out the training contract throughout Ireland, there is a superb social side. I joined the Chartered Accountants Student Society in Ulster during the first year of my training contract, building a network of new and lasting friendships. Now, as Chair of the Chartered Accountants Student Society Ireland, I have expanded that network further and continue to thoroughly enjoy my training.  The training contract is not easy and requires a lot of hard work, dedication and time. That said, the volume of work should not discourage you from the world of abundant opportunities you become exposed to while doing it. CASSI Survey on AAFRP issues CASSI has been engaging with Chartered Accountants Ireland since the AAFRP issues of 24 April. Shortly after the exam, we surveyed FAE students on their experiences, and received some 400 responses. We have discussed the findings with the Institute, and have asked them to respond to the challenges set out by students. CASSI is the representative body for all students, and while we cannot be involved in individual cases, we aim to be the voice of students across a range of educational, careers and social topics. A Q&A document relating to AAFRP issues is now available online.