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
  • There is also more detail in the draft Guidelines relating to the role and profile of the MLRO.

See also the Central Bank Overview and Consultation (which contains the draft Guidelines).