On the 10th of February 2012, the Department of Finance published the Criminal Justice ( Money Laundering and Terrorist Financing) Act Guidelines. These guidelines were prepared by a committee representing various sectors of the financial services industry.

The Guidelines have not been approved under section 107 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 which is a matter for the Department of Justice and Equality and the Department of Finance. This means that  a designated persons cannot rely on compliance with the guidelines if, they are in breach of the 2010 Act.

The Central Bank of Ireland have indicated that they will have regard to the guidelines in assessing compliance by designated persons with the 2010 Act. However, the Central Bank have highlighted that a designated person should alwus refer directly to the Act when ascertaining their statutory obligations.

The role of the Guidance Notes is to attempt to resolve legal uncertainties. Both Guidance and ‘industry practice’ could be shields to an allegatons of wrongdoing. However, if you depart from the Guidance notes, a designated person should record the rationale for the departure.

Credit and financial institutions through senior management (including boards of directors) must ensure that they are in a position to demonstrate to the Bank that they are meeting the requirements as specified in the Act.

The Guidance Notes provide clarity on the following areas:

• Scope of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

• Assessment and management of risk/risk based approach

• Customer due diligence • Reliance on third parties to undertake due diligence

• Internal policies and procedures

• Reporting of suspicious transactions

• Record keeping • Training

• Enforcement • Identification and Verification procedures

• Template documentation

For a copy of the Guidance Notes click here