13 June 2019

New Anti-Money Laundering and Counter Financing of Terrorism Section - Members Areas Brokers Ireland Website

As you are aware, the Irish AML/CFT legislative framework is set out in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. This framework was updated with the transposition of the 4th EU AML Directive into Irish Law in 2018 pursuant to the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018.
 
The key amendments in the 2018 Act include:

  • Introduction of Business Risk Assessments
  • Simplified and Enhanced Due diligence changes
  • Internal Policies and procedure
  • Enforcement
 
Given the importance of AML/CFT, the Compliance unit has created a new section entitled Anti-Money Laundering and Counter Financing of Terrorism in the compliance support section of the Brokers Ireland website. This section includes the relevant primary legislation and also contains an updated Member Guidance Document and Templates to assist members in complying with AML/CFT requirements. Please note, the guidance document is provided for information purposes only and does not constitute legal advice. 
 
The guidance document has been updated in respect of the following:
  • Client Risk Assessments
  • Requirements for Politically Exposed Persons (PEPs)
  • Customer Due Diligence Requirements
 
Template documents include:
  • Business Risk Assessments
  • Client Risk Assessments
  • Staff Training policy & Log
  • Guidance on Suspicious Transactions Reporting
  • Monitoring of Transactions and Business Relationships
 
Members might also find the new Member AML/CFT checklist useful for highlighting the key AML/CFT key requirements which the firm needs to be aware of.
 
Brokers Ireland Template Presentation 2019: Annual Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Training
 
As you are aware it is a requirement for all intermediaries to undertake annual Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) training.  Brokers Ireland's template presentation has been approved for 2 hours formal CPD* by the LIA, IOB and III for 2019 subject to the conditions as outlined below.  The purpose of the template is to provide a format for staff training - members must personalise the presentation to include reference to the firms specific AML/CTF procedures and processes.

Note: All Partners/Directors including non-executive directors are required to undertake this training.

Specific MLRO Anti-Money Laundering (AML) - A Guide to Money Laundering Reporting Officer Duties and Suspicious Activity Reporting will be provided at the Brokers Ireland Summer CPD session which is taking place on Wednesday 26 th of June in Portlaoise.
  
Member firms can access the presentation in the presentations folder in Anti-Money Laundering and Counter Financing of Terrorism section in the compliance members area of the Brokers Ireland website.  You will find it  here.  Brokers Ireland have also produced a Q&A which can be used following the presentation to test attendees knowledge.
 
*The presentation needs to be presented by a Qualified/Grandfathered individual within the firm.
  
The LIA and the Insurance Institute of Ireland have stipulated that a soletrader cannot avail of the CPD as there must be active participation in the presentation.  i.e. one cannot read the template and get formal hours.
 
You must keep a record of the date of training and the names of individuals who attended.
 
  • IOB Reference number: 2019-1140
  • LIA Accreditation number: LIA05739_2019
 
General Insurance
General Insurance Brokers Ireland Members do not have to apply individually for CPD as the Insurance Institute of Ireland has awarded the Brokers Ireland template: 2 hours formal CPD.
 
There are 3 conditions attached to this accreditation:
 
  1. The course material cannot be altered - only this presentation can be delivered. 
  2. The presenter must have an appropriate insurance qualification/Grandfathered and must be CPD compliant - one cannot read the template and get formal hours.
  3.  Attendees must be issued with a certificate or other proof of attendance at this CPD event as it will be required should they be audited by the Insurance Institute or the Central Bank of Ireland. 
 
ACII/FCII 
This event can also be used by ACII/FCII holders, as part of their Chartered Insurance Institute (CII) CPD scheme require ment, should they consider the content relevant to their development needs.

Submission of Annual Online Returns to Central Bank

It is a requirement for ALL intermediaries to make an annual return to the Central Bank of Ireland via the online system within 6 months of the end of the firms accounting period.

Please note: All members who have a year end of the 31st December 2018 are required to make this return before Sunday the 30th of June 2019.  For these members, the Central Bank has indicated that this return is open for completion on the online system.
In order to make a timely return, members are advised to commence collating the required information now to make the return. For your reference, please click on this link to bring you to the Central Bank Guidance on making a return and an up to date mock-up of the return is available  here .

IMPORTANT – Firms authorised under the Investment Intermediaries Act, 1995 (IIA) – See Below

Sole traders/Partners
It is important to note that sole traders, partnerships or an un-incorporated body of persons are required to prepare a Certificate of Solvency in line with 3.7 of the 2014 Handbook of Prudential Requirements for Investment Intermediaries which can be requested by the Central Bank at any time. The Certificate of Solvency is only required to be submitted if requested by the Central Bank.

Sole traders/Partners/Ltd Companies  
Following the submission of the firm’s annual online return, the firms auditor is required to submit a Statutory Duty of Confirmation (SDC) to the Central Bank in relation to the authorised entity. Template copies of SDCs are available from the auditor’s accountancy body. A scanned copy of the SDC should be submitted by e-mail to statutoryduty@centralbank.ie within 1 month of the date of the audit report.

The report must state whether or not circumstances have arisen that require the auditor to report a matter to the Central Bank under a prescribed enactment. Members should seek confirmation from their auditor that this requirement has been complied with.
Members who are having technical difficulties with the online Reporting System should contact the Regulatory Transactions Division directly at  OnlineReturns@centralbank.ie


June - Issue 03