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 It replaces the draft guidance published September 2020.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.

UK  Following the UK Prime Minister’s announcement to the House of Commons on 22 February 2022, The full details of the measures and sanctions imposed on Russia are available on the Foreign, Commonwealth & Development Office website. Professional firms and relevant practitioners will be legally required to adhere to these sanctions to safeguard the UK and the reputation of their industries. Where there is a failure to adhere to the sanctions, the Office of Financial Sanctions Implementation (OFSI) has the power to levy civil monetary penalties for breaches of financial sanctions. OFSI works with law enforcement for the most egregious cases where criminal prosecution may be considered. Details of their enforcement approach is available on OFSI’s website. In addition, a statement published by the Financial Conduct Authority (FCA) in response to the sanctions reminds the FCA’s supervised populations of its expectations around sanctions. Members should continue to consult these sources of information for future updates. EU/Ireland Information on the sanctions package imposed by the EU/Ireland is available from the Central Bank of Ireland website. 

Regulatory Fee Invoices  The Regulatory fee invoices for 2022 are now available online at the Myaccount portal of the website to view, print and pay.  Remittance should be made by 31 March 2022.  Need assistance?   Please email Sandra.smiley@charteredaccountants.ie with your name and member/firm ID along with the query or changes required.  We will issue a revised invoice if this is appropriate. 

The Insolvency Service GB has published the long awaited Consultation: The Future of Insolvency Regulation. This paper consults on proposals to strengthen the insolvency regulatory framework. The Government’s preferred option is to create a Single Regulator to replace the four authorising bodies (CAI, ICAS, ICAEW, IPA). In addition, the Government is also recommending the regulation of firms and not just individual Insolvency Practitioners in certain circumstances. The proposed new regulatory model would apply to England, Scotland and Wales. Insolvency, including regulation of insolvency, is a transferred function in Northern Ireland, although there is close alignment of the insolvency and regulatory frameworks between Great Britain and Northern Ireland. However, the document states that the Government will liaise closely with the Northern Ireland Executive to consider the impact of the reforms in Northern Ireland. The Institute will be responding to this Consultation with responses to be submitted by 25 March 2022. For more information see The future of insolvency regulation - GOV.UK (www.gov.uk).

From 22 December 2021 the Institute of Chartered Accountants of Scotland (‘ICAS’) is no longer a recognised accountancy body (RAB) in Ireland.  As notified to Institute members and firms in recent news items and in direct communication to audit compliance principals, the revocation of ICAS’s RAB status will have implications for Institute registered audit firms who include ICAS members amongst the firm’s responsible individuals (RIs) or amongst the qualified majority of owners and management board members of the audit firm.  Firms have been advised of the appropriate actions to take in this regard.  Such actions include relevant individuals applying for reciprocal membership of the Institute. The revocation of the recognition of ICAS as a RAB follows on the derecognition of the Institute of Chartered Accountants in England and Wales (‘ICAEW’) on 21 July 2021.  The issues arising for ICAEW members at Institute firms from that time are the same as those arising now for ICAS members. It has been necessary to amend the Institute’s Audit Regulations and Guidance (effective 1 January 2020) (‘the Audit Regulations – Ireland’) to reflect the fact that ICAEW and ICAS ceased to be RABs on 21 July 2021 and 22 December 2021 respectively.  This amendment has been made by way of an addendum to the Audit Regulations – Ireland (‘The December Addendum). The December Addendum includes amendment to the definitions of ‘Institute’, ‘appropriate qualification’, ‘audit affiliate’ and ‘practising certificate’ and clarifies a reference in guidance to the eligibility of reciprocal members for audit registration. The December Addendum is effective from 22 December 2021 and is to be read in conjunction with the Audit Regulations - Ireland. The December Addendum supersedes a similar addendum, now withdrawn, which was issued to reflect the derecognition of ICAEW as a RAB in July 2021. The Addendum and the Audit Regulations -Ireland, which are to be read together, are available on the Institute’s website. In addition, the Institute’s Public Practice Regulations have been amended with effect from 22 December 2021 to provide clarity in relation the requirements for practising certificates (‘PCs’) for reciprocal members who are also members of ICAEW or ICAS and hold a PC from ICAEW or ICAS respectively.  The change has been made at Regulation 5.2A of the Public Practice Regulations which are available to read on the Institute’s website.

Professional Standards has published its first Report on UK AML Supervision. This covers the period April 2020 – April 2021.

Our Individual Annual Return 2021 is currently available for completion online.  Please be reminded that this was due to be submitted by 29 October 2021. If you have yet to complete and submit your return, we would encourage you to do this at your earliest opportunity. Click here for your Individual Annual Return. We appreciate that this is a difficult period for members due to the Coronavirus and that members will be prioritising matters differently than they would in normal times. If unable to meet this timescale please contact Individual Annual Return.

The way you submit Suspicious Activity Reports (SARs) to the National Crime Agency (NCA) is changing. As part of the SARs online programme the NCA are replacing the current SAR online portal. Watch this short video for an online demo of how it will look, the reasons for the changes and how those changes can help improve financial crime intelligence. The changes aren’t due to go live until next year and Professional Standards will keep you informed of the progress.  Please see SAR Online demo - YouTube.

The updated CCAB Economic Crime Manifesto went live on 2 November 2021.