A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone. The document provides an overview of anti-money laundering legislation, requirements, and reporting procedures for accountants and other designated persons. It discusses customer due diligence, applying a risk-based approach, internal systems and controls, training staff, and making reports of suspicious transactions to the proper authorities.

1. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
In Association with:-
Online CPD for Accountants &
Professional Advisors
Anti Money Laundering - the
Legislation and the
Requirements
Presenter:
Michelle Kane - OmniPro
CPDStore.com
Unit 3, South Court, Block D, Iveagh Court,
Wexford Road Business Park, 5 – 8 Harcourt Road,
Carlow. Dublin 2.
059 9183888 01 4110000
www.OmniPro.ie www.CPDStore.com

2. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Anti Money Laundering
Legislation
– EU Third Money Laundering Directive transposed
into Irish Law
– The Criminal Justice (Money Laundering and
Terrorist Financing) Act 2010
Criminal Justice (ML &TF) Act
2010
• In broad terms this Act
– Defines the offence of money laundering
– Requires designated persons to identify non-domestic
politically exposed persons (PEPs)
– Requires identification of beneficial owners of legal
entities such as companies and trusts
– Focuses on the level of risk of money laundering
– Requires Central Bank and Financial Services
Authority to monitor credit and financial institutions
under this act
• The CCABI through the Institute’s have
published new Guidance in the form of a
Revised M42 Statement
OmniPro Education & Training 1

3. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Designated Persons
• Accountants in practice are ‘designated
persons’ under section 25 of the Act
• Other professions designated now include
– Solicitors and barristers
– Tax advisers
– Credit and financial institutions
– Trust and company service providers
– Private members gaming clubs
• Many of the obligations continue from the
previous regime or will not have changed
significantly, eg
• Obligation to identify clients
• Keep records
- retain identification records for at least 5 years
from last doing business with the client
- retain documentation relating to transactions
for at least 5 years following the date the
transaction was completed
- Adopt procedures
- Undertake appropriate training
- Report knowledge, suspicion or reasonable
grounds for suspicion to the Garda and the
Revenue Commissioners
OmniPro Education & Training 2

4. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
- Report all transactions connected with certain
‘designated’ states and territories
• In addition this Act extends its requirements to
businesses which are deemed to be in the
High Value Goods sector
• Any person trading in goods, but only in
respect of transactions involving payments in
cast of a total of atleast €15,000 whether one
transaction or a series
HVG Examples
• Antique dealers
• Boat sales
• Car sales
• Dealers in precious stones
• Jewellers
OmniPro Education & Training 3

5. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
New Developments
• Risk based approach to be taken to CDD
• Risk based approach to verify the identity of
beneficial owners
• Enhanced Due Diligence for politically
exposed persons (PEP’s) and for clients who
have not presented themselves in person
when establishing the business relationship
• Simplified due diligence for certain categories
• Removal of the general exemption from CDD
for clients who are themselves designated eg
other accounting firms or legal firms are no
longer exempted
• The ability to place reliance on 3rd parties to
carry out CDD
• On-going monitoring of your dealings with your
clients on a risk sensitive basis
• Introduction of more detailed requirements in
relation to your policies and procedures for
CDD measures and on-going monitoring,
reporting, internal control
• Including
– Internal reporting procedures
– Risk assessment and risk management
– Monitoring and management of compliance
– internally communicating the policies you
have established
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6. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• A supervision obligation on the competent
authorities to ensure that designated persons
are in compliance with the legislation
– In other words your Institute will have a more
onerous obligation to inspect your procedures
and how you are applying them.
What is Money Laundering
Anyway?
The 2010 Act defines money laundering very
widely
• all forms of handling or possessing the
proceeds, where the person knows or believes
such proceeds is or represents the proceeds
of criminal conduct,
• It includes possessing the proceeds of one‘s
own crime,
• facilitating any handling or possession of such
proceeds.
• The proceeds of criminal conduct may take
any form, including in money or money‘s
worth, securities, tangible property and
intangible property.
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7. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• The offence of money laundering also includes
someone being reckless as to the criminal
nature of the proceeds.
• Money laundering can be carried out in
respect of the proceeds of conduct that is an
offence in Ireland as well as conduct occurring
elsewhere that
– is an offence in the place where the conduct
takes place and
– would have been an offence if conducted in
Ireland
What is a Money Laundering Offence?
• Anyone can commit a money
laundering offence.
• A person commits a money laundering
offence if he, knowing or believing that
property is or probably comprises of the
proceeds of criminal conduct or being
reckless as to whether the property is or
probably comprises of such proceeds,
engages in any of the following acts in
relation to the property:
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8. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• Concealing or disguising the true nature,
source, location, disposition, movement or
ownership of the property, or any rights
relating to the property;
• Converting, transferring, handling, acquiring,
possessing or using the property;
• Removing the property from, or bringing the
property into, the State.
• For a matter to be money laundering there
must not only be criminal conduct, but also
proceeds of criminal conduct
Punishment for committing a
money laundering offence
• Up to 14 years in prison
• And/or an unlimited fine
OmniPro Education & Training 7

9. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Failing to make a report is an
offence
• If in the normal course of business, ie acting
as an auditor you come across something
which appears to be, or where you have a
suspicion it is, money laundering you must
make the required report
• Failure to do so is an offence under Section 42
• You are obliged by the legislation to make a
report
• There is no diminimus level in this legislation
so reports are required no matter the amount
concerned
• Failure to make a report carries up to 5 years
imprisonment and/or an unlimited fine
Legal privilege
• External reports are not necessarily required
where you are assisting a client rectify
position or
• receive information or documentation for
example when engaged by a legal
professional to carry out work on behalf of a
client.
OmniPro Education & Training 8

10. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Internal systems & controls
• Firms need to have in place a range of
systems in order to prevent and detect
operations related to money laundering or
terrorist financing.
• customer due diligence and ongoing
monitoring;
• reporting procedures ;
• record-keeping;
• internal control;
• risk assessment and management
• compliance management;
• communication and training.
• need to establish systems that create an
internal environment or culture in which staff
are aware of their responsibilities under the
Irish anti-money laundering regime and where
they understand that they are expected to fulfil
those responsibilities with appropriate
diligence.
OmniPro Education & Training 9

11. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
How do I decide what systems I need?
Consider a range of matters including:
• the type, scale and complexity of your own
operations;
• the different types of activities you are
involved in;
• the types of services you offer, and your client
profiles;
• how you sell your services;
• the type of business transactions it becomes
involved in or advises on; and
• the risks associated with each area of its
operations in terms of the risks of the
accounting firm or its services being used for
money laundering or terrorist operations, or
the risks of its clients and their counterparties
being involved in such operations.
What are the likely risks to be
considered at a firm level
• Clients trying to evade the payment of taxes;
• Clients attempting to utilise false accounting
to support a claim;
• Clients deliberately trying to defraud their
customers;
• Clients using this practice to assist them to
launder criminal proceeds in an attempt to
make them legitimate; and
• Clients assisting with terrorist financing.
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12. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Reporting Procedures
• Staff need to have clear procedures as to
– How; and
– Who
They need to make reports to either internally or
externally if you do not appoint an MLRO
• It is recommended that information in respect
of any report should not be kept on the client
file to ensure that there is no possibility of
‘tipping off’
Training Staff
• Training needs to include
– Information on the legislation including
penalties
– On how to recognise suspicious transactions
– How and who to consult with internally
– How to make internal reports
– How to avoid tipping off
OmniPro Education & Training 11

13. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• Frequency of training - is up to you to decide
but it is suggested that it should be no less
than annually
• New staff members should be trained as soon
as is practicable after starting
Applying a risk based approach
• You need to develop a risk profile for your firm
• And
• To apply to your client base
– eg, Assess your clients by industry, type or
sector
– The jurisdictions of client origin, funding,
investment and conduct of business
– Different types of services or products
Keep it simple
• Categorise by
- low
- normal
- high
• Risk ratings can be raised or lowered with
appropriate management input in particular or
exceptional circumstances
OmniPro Education & Training 12

14. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Consider how your firm is being
used
• Are Clients
– Using the firm actively to launder money through
the handling of cash or assets
– Are you concerned in an arrangement which could
facilitate money launder through provision of
investment services or providing trust or company
services
– Is there a risk attaching to the client eg high risk
sector, illegal activities, tax evaders, fraud?
Is a Money Laundering Reporting
Officer Required?
• The 2010 Act does not specifically require the
appointment of a MLRO
• Section 44 (1) states that accounting firms can
do so if they decide it is appropriate as part of
the procedures they adopt
• If an MLRO is appointed then the obligations
under S42 are met by individuals making an
internal report
• If there is no such internal procedure, ie a
MLRO is not appointed then individual staff
members would be obligated to make the
external reports
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15. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Role of the MLRO
• Receive internal reports of suspicions from
other staff members
• Consider the facts and circumstances and
decide whether or not to make an external
report
• Ensure that staff have obtained appropriate
training to be aware of suspicious transactions
etc
• Act as the liaison point with the Garda and
Revenue Commissioners
• Maintain the firms records in relation to any
cases reported including documents detailing
the investigation/review of internal reports
• Advising on how to proceed with work once a
report has been made in order to manage the
risk of prejudicing any investigation (tipping
off)
• Design and implement internal AML systems
Customer Due Diligence (CDD)
• Identifying the customer
- Verifying that identity on the basis of documents, data or
info received from a reliable and independent source
• Identifying beneficial owners
• Applying risk based measures to understand
ownership and control structures
• Conducting ongoing monitoring of the
business relationship
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16. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Identification Procedures for
Existing Customers
• S33 now requires you to satisfy yourself that
you have adequate documentation on the
identity of all clients including any
‘grandfathered’ under the old regime.
• The Act does not require immediate CDD
• CCAB I recommends when you are next
commencing an engagement with existing
clients
When do I apply CDD?
• When establishing a business relationship
• At appropriate times to existing customers
• Where there are any doubts about previously
obtained customer information
• YOU NEED TO ‘KNOW YOUR CLIENT’
• YOU NEED TO DOCUMENT YOUR
KNOWLEDGE PROPERLY
• YOU NEED TO RISK ASSESS THEM
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17. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Reporting suspicions
• Accounting firms need to submit external
reports to the Garda and the Revenue
Commissioners where
– You have knowledge
– Suspicions
– Or grounds to suspect
That another person has been, or is engaged in
money laundering or terrorist financing
• This knowledge or suspicion must arise ‘in the
course of carrying on business as an
accounting firm’
• Can only arise where you have scrutinised the
information
• Where doubt exists seek legal advice
What needs to be reported
• the information on which the knowledge or
suspicion has arisen
• The identity of the suspect
• The whereabouts of the laundered property
• Any other relevant information eg names of
associates etc
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18. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• Insolvency practitioners need to take care
when being appointed to a case that the
assets which they have been appointed to sell
may represent the proceeds of criminal
conduct .
• Selling those assets may constitute an offence
under Section 42(9)
How to make reports
• There is a prescribed form which can be
downloaded from
www.antimoneylaundering.gov.ie
Where are reports made to?
• By post to:
• Detective Superintendent, Financial
Intelligence Unit, Garda Bureau of Fraud
Investigation, Harcourt Square, Dublin 2
• Tel: 01 6663714
• And
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19. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• Revenue Commissioners,
SuspiciousTransactions Reports Office, Block
D, Ashtowngate, Navan Road, Dublin 15
• Tel No: 01 8277542
• Following a STR you will receive an
acknowledgement and feedback will be
provided on a six-monthly basis regarding the
status of any investigation
Taxes Consolidation Act 1997
• Income Tax
• Capital Gains Tax
• VAT
• Capital Acquisitions Tax
• Stamp duty, etc
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20. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
S 1078 Outlines Revenue offences
• Incorrect returns
• Incorrect claims or reliefs
• Issuing incorrect invoices
• Failure to deduct PRSI
• Incorrect books of account
• Failure to submit returns or certificates as
required
S1079 Duty to Report
• As an Accountant in Practice/Auditor you
become a relevant person and so you then
have a duty to make a report under this
legislation of any instance of a relevant
offence
Relevant Offences
• Wilfully or knowingly making an incorrect
return, statement or accounts
• Wilfully or knowingly claiming or obtaining a
relief on or an exemption from making a
payment
• Failing to comply with any provision of the
Acts in respect of furnishing return in relation
to income, or profit or gain
OmniPro Education & Training 19

21. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Other reporting responsibilities
• Company Law Enforcement Act 2001
• Criminal Justice (Theft and Fraud Offences)
Act 2001
• To the professional bodies regarding
misconduct of members
• To PI Insurers
Reporting to the Professional
Bodies
• Because of the way complaints are dealt with
internally if you are going to make a report be
mindful of ‘Tipping Off’
• It may be sensible to speak to someone within
the body who is aware of the responsibilities it
has under Anti Money Laundering legislation
• The same principle applies to alerting your
insurers.
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22. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Insolvency practitioners
• Obligations under S56 of the CLEA 2001
which requries the liquidator to report on the
conduct of the directors of an insolvent
company
• If in doubt take advice to ensure you are
avoiding the risk of prejudicing an
investigation
Anti-Money Laundering
Compliance Unit
• Established by the Department of Justice and
Law Reform to administer functions of a
competent authority
– The authorisation process for Trust and
Company Service Providers
– The registration for Private Members Gaming
Clubs
– The functions of monitoring designated
persons assigned to the Minister
OmniPro Education & Training 21

23. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
Trust & Company Services
Providers
• Who carry on activities without registering will
be subject to a fine of €5000 or imprisonment
of 12 months or on conviction of an indictment
to a fine and/or imprisonment of up to 5 years
What does it mean to your firm?
• You need to be diligent and spot those
transactions that fall foul of the legislation
• You need ensure that staff are appropriately
trained in AML procedures and that they have
adequate client knowledge to spot suspicious
items
• You need to ensure that your firm makes all of
the appropriate reports to Garda and
Revenue, and others
• You need to ensure that your own procedures
are adequate
• By now you will need to have client
identification on all clients;
• Have adopted and documented appropriate
risk assessment of your business and your
clients
• Have appointed an MLRO
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24. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
• And, have carried out your first AML
compliance review!
Useful Webpages
• CAI’s frequently asked questions
• Financial Regulator section on Anti-Money
laundering
• www.antimoneylaundering.gov.ie
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25. A Personalised CPD Certificate of Completion will be forwarded to you upon completion of this course. These notes do not serve as proof of completion alone.
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