Friday, 21st December 2018
The Central Bank has just launched a consultation exercise relating to new draft AML/CTF Guidelines for the Financial Sector. Regulated businesses are invited to give feedback on the draft Guidelines by 5 April 2019. The Guidelines set out the expectations of the Central Bank regarding the factors that firms should take into account when identifying, assessing and managing ML/TF risks.
Some of the key points are:
- detailed guidance around the factors which should underpin and inform the risk based approach
- greater focus on ongoing monitoring and guidance on the approach which might be taken to monitoring customer relationships
- an expectation for more granularity in AML/CTF policies and procedures and, in particular:
- for alignment of customer contracts with Section 33(8)(a) and (b) CJA (discontinuance of customer relationships where there is incomplete CDD) with a suggestion for customer consent to potential discontinuance to be obtained at on-boarding stage;
- setting out the measures to be taken with regard to the monitoring of third party relationships;
- guidance relating to "RegTech" – the use of technology to help regulated businesses manage their AML/CTF obligations;
- greater clarity around what good governance by senior management and boards should look like, including an obligation to ensure that the AML/CTF function is adequately and properly resourced.
- for alignment of customer contracts with Section 33(8)(a) and (b) CJA (discontinuance of customer relationships where there is incomplete CDD) with a suggestion for customer consent to potential discontinuance to be obtained at on-boarding stage;
- there is also more detail in the draft Guidelines relating to the role and profile of the MLRO.
