The Central Bank of Ireland (CBI) has published an Anti-Money Laundering Bulletin addressing Section 33(8) of the Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010 (CJA). The Bulletin outlines the types of steps firms may take to comply with Section 33(8) (a) and (b) and separately addresses CDD measures in relation to new and existing customers. The Bulletin builds on previous publications in which the CBI has outlined its expectations in relation to Section 33(8).
Section 33(8) (a) CJA prohibits a firm that is unable to identify and verify a customer due to the failure of that customer to provide the necessary documentation or information, from providing any service or carrying out any transactions sought by that customer while the documentation or information remains outstanding. Section 33(8) (b) CJA provides that firms must separately and distinctly take action to discontinue the business relationship with the customer in such circumstances. The requirements of Section 33(8) have given rise to practical challenges and this Bulletin provides welcome guidance on a number of issues.
For new customers firms should review their contractual arrangements to ensure that on-boarding requirements address the requirements of Section 33(8) (a) and (b). For existing customers firms should have remediation plans in place to address CDD failures and deficiencies, prioritising customers that would present a higher ML/TF risk. Where robust efforts have been made to close any CDD deficiencies and CDD failure continues the Bulletin states that firms may put in places measures to manage relevant ML/TF risks by marking such accounts as "discontinued" and ring-fencing them from normal accounts. For a more detailed account please click here.