Since 2011 the anti-money laundering/counter terrorist financing (AML/CTF) supervision unit of the Central Bank of Ireland (Central Bank) has been conducting inspections on the investor documentation of both UCITS and Non-UCITS investment funds under the provisions of the Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010 (CJA 2010). The scope of the investment fund inspections has included a detailed review of the:
- customer due diligence (CDD) procedures used to identify and verify investors;
- nature and duration of non AML compliant investors;
- nature and level of AML/CTF training provided to those persons involved in the conduct of the investment fund;
- arrangements with any third party on which the investment fund is relying for AML/CTF purposes.
The Central Bank inspections have placed increased focus on the requirement for boards of directors to:
- familiarise themselves with the obligations under the CJA 2010 and undergo appropriate AML/CTF training in accordance with Irish law;
- demonstrate how the investment fund is in compliance with the CJA 2010 where there is insufficient CDD documentation on file for investors;
- understand the AML/CTF procedures of the relevant fund administrator to ensure the investment fund meets the requirements under the CJA 2010.
For further information in relation to the above please contact Lisa.Cotter@kbassociates.ie Money Laundering Reporting Officer (MLRO)