In October 2012, the Central Bank issued a letter to all Irish regulated credit and financial institutions (including credit unions) regarding compliance with AML/CFT legislation. This followed a programme of inspections across all regulated sectors of the Irish financial services industry to monitor compliance with the CJA 2010.

The letter set out in some detail the control failures identified by the Central Bank in the course of its inspections. The letter stresses the importance of understanding the implications of non-compliance by boards and senior management and reminds firms that the Central Bank is prepared to use a full range of its regulatory tools against firms that are not in compliance with the CJA 2010.

One particular finding of the Central Bank related to what it considered “material gaps” in the provision of training to all relevant staff. The Central Bank considers “relevant staff” to include board members and senior management.  Instruction on the law and “training” is an obligation under the CJA 2010 and is deemed essential in ensuring senior management are in a position to oversee clients’ compliance with the CJA 2010. It is therefore important that Directors of credit unions and relevant staff receive appropriate training in relation to the CJA 2010. The Central Bank has expressed that it expects that policies and procedures will be up-to-date and available for inspection and that senior management (including boards of directors) can demonstrate full awareness of their responsibilities.