The Minister for Justice, with the consent of the Minister for Finance, has issued Guidelines under section 37(12) of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended) clarifying those functions in the State that may be considered to be prominent public functions for the purposes of the Act. This will assist firms to identify domestic Politically Exposed Persons (PEPs) when conducting their risk assessment.

The National Crime Agency (UK) has published the latest edition of SARs in Action. This edition explains how SARs have helped to identify victims that require safeguarding, seize criminal funds and assets and support multiple investigations.

Introduction Under the Joint Insolvency Committee’s (JIC’s) strategic work plan Statements of Insolvency Practice (SIPs) are subject to periodic review in order to ensure they remain relevant to changing legislation and market conditions. Following consultations with the profession and other stakeholders, including the Insolvency Service, HMRC and major creditor representatives, a revised version of SIP 3.1 – Individual Voluntary Arrangements, has now been approved by the JIC and the Recognised Professional Bodies for implementation with effect from 1 March 2023. Summary of Changes The principal changes in the revised SIP 3.1 relate to the degree of emphasis on the IP’s responsibility to ensure that the debtor has received suitable advice prior to entering an IVA and during its implementation. This includes ensuring that the debtor is aware of all potential debt relief solutions available and that they are provided with adequate time to think about the consequences and the options available before instructing an IVA to be drawn up. Where the debtor comes to the IP through a referrer, the IP should make themselves aware of the nature and extent of the advice previously given to the debtor and collect evidence of such advice. The IP should ascertain whether referrers that have advised the debtor are FCA authorised or exempt for debt advice purposes and document their status. If there are any shortcomings in the advice the IP is required to provide the appropriate advice themselves. The revised SIP 3.1 incudes a greater emphasis on documenting the process, including, where appropriate, advice calls, and on providing information to creditors that is more extensive and useful to them than before. There is also a focus on providing tailored information and advice relevant to the debtor’s particular circumstances rather than relying on generic explanations and standardised texts. The changes between the revised version and the current (2014) version of SIP 3.1 are set out in this comparison document. Publication and Implementation The revised SIP 3.1 will apply to IVAs where the Nominee is appointed on or after 1 March 2023. The revised SIP 3.1 applies in Northern Ireland, England and Wales. The revised SIP 3.1 is available here.

The Institute has issued revised Audit Regulations, UK (effective 5 December 2022), replacing the 1 January 2021 edition of those Regulations.  The revisions to the Audit Regulations, UK primarily reflect the new registration arrangements with the FRC for firms that audit UK public interest entities (PIEs) and which also take effect on 5 December 2022. The FRC consulted in these processes earlier this year and issued their final Regulations and Guidance in July 2022. The link for this can be found on the FRC website. The Institute’s Professional Standards Department is writing directly to the audit compliance principal at each Institute audit firm with UK audit registration with more detail regarding the changes to Audit Regulations, UK. Institute firms with audit registration in both the UK and Ireland comply with both the Audit Regulations, UK and the Audit Regulations, Ireland.   The guidance document comparing the Audit Regulations in the two jurisdictions, is available on the Institute’s website, and has been updated to reflect the revised Audit Regulations, UK. Further changes are expected to be made to the Audit Regulations, UK in 2023 which are likely to reduce the differences between the Audit Regulations Ireland and Audit Regulations UK.

Chartered Accountants Ireland has, in accordance with its Bye-Laws and under various statutes in Ireland and the UK, specific supervisory and regulatory obligations in respect of its membership.  The Professional Standards Department is responsible for the exercise of its regulatory functions through a regime that includes regulatory and disciplinary committees and bodies comprising both accountants and non-accountants. The Professional Standards Department is seeking to recruit persons for appointment to the Conduct Committee, the Disciplinary Panel and the Appeal Panel.  At present, we are particularly interested in hearing from accountants who may be interested in such roles.  Further information about the Conduct Committee, the Disciplinary Panel and the Appeal Panel as well as the appointment process can be found in the relevant sections of the information pack for applicants.  If you would like to request an application form please email committeerecruitment@charteredaccountants.ie

Professional Standards has published the UK AML Supervision Report 2021/2022 in accordance with Reg 46A of the Money Laundering Regulations 2017 (as amended).

Your Individual Annual Return 2022 is now available for completion online.  Please ensure it is submitted by 31 October 2022. Click here for your Individual Annual Return. Please note, timely completion will ensure that all members in practice are invoiced correctly for 2023 Regulatory Fees.

Professional Standards Department has just published Issue 32 of the Regulatory Bulletin. Click on the link provided to access this publication.

HM Treasury has approved the updated AML Guidance for the accountancy sector (AMLGAS).  Most practitioners will be familiar with this version as the latest draft has been available on our website since September 2020.     This guidance is based on the law and regulations as of 13 July 2021. It replaces the draft guidance published September 2020. Please note that while most requirements remain, some requirements of the regulations relating to EU lists no longer apply since the UK has left the EU. There are explanatory notes to accompany the updated AMLGAS available below. HM Treasury has also approved the Supplementary Guidance documents for Tax Advisors and  Insolvency Practitioners. Again both Supplementary Guidance documents have been available on our website for some time awaiting HM Treasury approval. AMLGAS Updated AMLGAS Explanatory Notes Supplementary Guidance - Tax Practitioners Supplementary Guidance - Insolvency Practitioners

Chartered Accountants Ireland is currently reviewing the Disciplinary Regulations with a view to identifying and implementing enhancements to improve the overall efficiency, efficacy and fairness of the disciplinary process. The objective of the disciplinary process is to promote adherence to the highest possible standards of professional and business conduct, efficacy and competency by members, member firms, students and affiliates by providing an efficient, effective and fair system for: dealing with complaints and conducting investigations of disciplinary matters; and taking disciplinary action, where appropriate. As part of this review we are inviting comments, suggestions and feedback from stakeholders. Submissions received prior to 12 September 2022 will be used to inform the development of proposals for further consideration by the Professional Standards Board, the Council and oversight bodies including IAASA and the FRC in due course. The existing Disciplinary Regulations and associated guidance are available by clicking on the links.

Professional Standards Department has just published Issue 31 of the Regulatory Bulletin. Click on the link provided to access this publication.

The Institute’s Continuing Professional Development (‘CPD’) Regulations have been revised with effect from 6 April 2022.  The CPD Regulations apply to all Institute members.  The revisions clarify that members who work in certain regulated areas often have additional CPD obligations set out in other Regulations or in legislation. Affected members are reminded to be cognisant of those additional CPD obligations as well as obligations under the Institute’s CPD Regulations. In particular, revisions have been made at this time to clarify that members who are responsible individuals (RIs) have additional separate CPD obligations under the Institute’s Audit Regulations.  In both Ireland and the UK, RIs are required to undertake appropriate programs of continuing education in relation to audit (Audit Regulation 3.17A).  New detail has  also being added to the Audit Regulations Ireland (effective April 2022) regarding how RIs are expected to demonstrate compliance with Audit Regulation 3.17A in line with IAASA’s Guidelines for the RABs on the regulation, monitoring and enforcement of continuing education for statutory auditors (‘IAASA’s CPD Guidelines’).  Revisions to the CPD Regulations also highlight additional CPD obligations for members who are subject to anti-money laundering supervision by the Institute. The revised CPD Regulations (effective 6 April 2022) are available here.

Chartered Accountants Ireland (the Institute) has published Audit Regulations and Guidance for Ireland with effect from 6 April 2022 (the Audit Regulations Ireland).  The Audit Regulations Ireland replace the Audit Regulations and Guidance (effective 1 January 2020) and the addendum effective 22 December 2021. What’s new for audit firms and RIs auditing Irish entities? Audit firms and responsible individuals (RIs) in Ireland can expect the following key changes in the Audit Regulations Ireland: Easier to read Audit Regulations tailored for a single jurisdiction (Ireland) Additional detail regarding RI CPD obligations in line with the IAASA CPD Guidelines (effective 1 Jan 2022) New requirement for practice continuity (alternate) arrangements for sole practice audit firms Changes reflecting the change in status of ICAEW and ICAS (both ceased to be Recognised Accountancy Bodies in Ireland during 2021) Introduction of discretion for the Institute to recover costs suffered following an IAASA investigation regarding an audit firm Miscellaneous changes to improve clarity and completeness Audit firms and RIs registered for audit by the Institute in both the UK and Ireland must comply with the Audit Regulations Ireland and the Audit Regulations UK (effective 1 Jan 2021).  An information document comparing the Audit Regulations Ireland and the Audit Regulations UK is available on the Institute’s website here.

The Institute’s Professional Standards Board (PSB) has published its 2021 Annual Report.  The report describes the activities of the PSB and the Institute’s Professional Standards Department during 2021.  The PSB Annual Report 2021 is available to read here.

HM Treasury has published a Money Laundering Advisory Notice about the risks posed by jurisdictions with unsatisfactory money laundering and terrorist financing controls. This note also provides details of the new statutory instrument the Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2022 due to come into force on 29 March 2022 which specifies the updated list of high risk third countries. Once effective, this will replace the current list within the Money Laundering Regulations 2017. Members are reminded of the legal requirements within the Money Laundering Regulations 2017 to apply enhanced customer due diligence and enhanced ongoing monitoring in relation to high risk third countries. 

We would encourage all IPs to take time to read this Dear IP special edition on the Russian sanctions. Further guidance is available on Professional Standards Website at: CCAB UK Guidance on Sanctions CCAB Ireland Guidance on Sanctions

The European Union sanctions whistleblower tool is accessible via the Commission’s website at https://eusanctions.integrityline.com/. It facilitates the anonymous reporting of possible violations of EU sanctions. It can be used to report past, ongoing or planned sanctions violations, as well as attempts to circumvent EU sanctions. More details about the tool are available at https://ec.europa.eu/info/business-economy-euro/banking-and-finance/international-relations/restrictive-measures-sanctions_en#whistleblower

CCAB has issued a joint statement to the profession following recent and ongoing development in Ukraine.  This guidance considers members’ obligations in relation to sanctions, ethical considerations and obligations under AML legislation.

CCAB-I has published the updated AML Guidance for the Accountancy Sector incorporating the latest amendments to Irish legislation including the transposition of the Fifth Money Laundering Directive.

Members are reminded that all legal and natural persons are bound by the obligations in the sanctions. Since publication of the Guidance on Sanctions by CCAB and CCAB Ireland, we have received the following updates from the Department of Finance. This is summarised material and should be read in conjunction with the official lists and Statutory Instruments. The relevant Statutory Instruments are, or will shortly be, available on the Irish Statute Book. Further information on restrictive measures can be viewed also at: The Central Bank of Ireland D/Foreign Affairs – who also have domestic guidance on the implementation of sanctions at the bottom of that page The measures agreed at an EU level are also outlined on the EU Council website. Email Received 4 March 2022 from Department of Finance Please find below details of the most recent measures imposed on Belarus in response to its unprovoked and unjustified military aggression against Ukraine: An EU travel ban and asset freeze in respect of 22 persons associated with the Belarusian military and Ministry for Defence. These measures are imposed under the existing sanctions regime in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. Further restrictions on trade between the EU and Belarus, relating to the trade of goods used for the production or manufacturing of tobacco products, mineral fuels, bituminous substances and gaseous hydrocarbon products, potassium chloride (“potash”) products, wood products, cement products, iron and steel products and rubber products. Additional restrictions on exports of dual-use goods and technology and related services, as well as restrictions on exports of certain goods and technology which might contribute to Belarus’ military, technological, defence and security development, together with restrictions on related services. Email Received 2 March 2022 from Department of Finance Please find below details of additional measures imposed on the Russian Federation in response to its unprovoked and unjustified military aggression against Ukraine: A ban on the sale, supply, transfer or export of Euro banknotes to Russia or to any natural or legal person, entity or body in Russia is being introduced. This includes the Russian government and the Central Bank of Russia. The removal of 7 Russian banks from the SWIFT system with a 10 day lead in time. This includes any entity that the listed banks own 50% or more of. The banks affected are: Bank Otkritie Novikombank Promsvyazbank Bank Rossiya Sovcombank VNESHECONOMBANK (VEB) VTB Bank A prohibition on investing in, participating or otherwise contributing to projects co-financed by the Russian Direct Investment Fund. A prohibition on broadcasting or enabling the broadcast of state-owned media Russia Today or Sputnik in the EU.

Chartered Accountants Ireland,  Professional Standards department, together with, the other members of CCAB Ireland have issued a joint statement to the profession following recent and ongoing developments in Ukraine. This guidance considers members’ obligations in relation to sanctions, ethical considerations and obligations under AML legislation.