The Central Bank has written to firms using powers contained in sections 63 to  83 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (“CJA 2010”).  The Central Bank has sought information on firm’s customer due diligence procedures but also on firm’s governance arrangements, suspicious transactions reporting, internal policies and procedures and training and record keeping.

The Central Bank has only been specifically responsible for ensuring compliance with the anti-money laundering and anti-terrorist financing rules since the CJA 2010 was enacted.  Specifically section 63 required the Central Bank to “effectively monitor” and to “take measures that are reasonably necessary for the purpose of securing compliance [with the Act]”.

This is essentially a desk-top review of firm’s compliance with the requirements of the CJA 2010. It is interesting to note that this review is being carried out when long awaited detailed guidance notes have not yet been finished. Given the statutory requirement to “take measures” to ensure compliance we would expect that the Central Bank will undertake more detailed on-site reviews as a follow up to these initial reviews and that it will take administrative sanction in some cases of serious non-compliance.

We would recommend that firms review their compliance with all of the obligations contained in the CJA 2010.