The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 ("CJA 2018") transposed the majority of the Fourth Money Laundering Directive (EU) 2015/849 ("4MLD") into Irish law.
4MLD sought to put in place the updated FATF global standards, which promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
CJA 2018 came into force on 26 November 2018. It introduced significant changes from that date to Irish legislation on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing ("ML/TF"). Irish anti-money laundering ("AML") and counter terrorist financing ("CTF") legislation is now contained in the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2018 (the "CJAs").
The Central Bank of Ireland (the "Central Bank") is the competent authority for the monitoring of credit and financial institutions' compliance with the CJAs and is responsible for taking reasonable measures to secure compliance.
In September 2019, the Central Bank published its AML and CTF Guidelines for the Financial Sector (the "Guidelines"). The Guidelines supplement the CJAs and form core guidance for the Irish financial services industry in this area.
Impact Analysis Table
The Impact Analysis Table considers the key changes introduced by the CJA 2018 that apply to Irish authorised investment funds (both UCITS and AIFs, irrespective of their legal form) and identifies important enhancements that these funds (and their Irish authorised management company or AIFM, if relevant) are required to make to their AML/CFT framework to comply with the CJAs.
How the Maples Group can help
We are assisting clients in considering measures that investment firms, UCITS and AIFs should take to ensure compliance with the CJAs.
In most cases, this will include:
- Conducting a gap analysis and a review of existing written AML/CTF policies including any existing documented business risk assessment with a view to preparing an enhanced AML/CTF policy document and documented business risk assessment;
- A review of internal controls and the AML/CTF procedures framework; and
- Engaging with administrators on funds' behalf to ensure that policies and operational processes at delegate level are being enhanced where required to comply with the new requirements.
Additionally, annual AML training for directors in 2019 should include a briefing on the changes introduced under the CJA 2018.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.