The Central Bank issued a letter (12 October 2012) to all Irish-regulated credit and financial institutions regarding compliance with anti-money laundering and counter-terrorism financing (AML-CFT) legislation. The letter looks at current levels of compliance by firms with AML-CFT legislation and provides an overview of the control failures identified during Central Bank inspections. The letter highlights the importance of good governance (and whether firms can demonstrate visible compliance with their legal obligations) and the necessity for firms to anticipate changes to legislation and international standards. The Bank stressed that it expects all firms to pro-actively address any gaps in AML/CFT cultures, policies and procedures and warns firms of the seriousness with which the Bank will view any subsequent instances of poor compliance with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Control failures identified include; governance, risk assessment, policies and procedures, training, and customer due diligence practices.