by John McCarthy Consulting Ltd. | May 18, 2025 | Blog, News
We saw last week that the proposed new AML Regulation AMLR places additional emphasis on AML training for employees and others.
This week we look at Article 13 of the EU AML Regulation AMLR which mandates regular assessments for individuals responsible for an obliged entity’s AML/CFT compliance.
Such personnel must be regularly evaluated on their:
- Skills
- Knowledge
- Expertise
- Integrity, and
- conduct
The assessments carried out must be performed on new personnel prior to taking up responsibility for AML compliance activities, including agents and third parties. The intensity of the subsequent assessments shall be risk based and determined on the basis of the tasks entrusted to the person and risks associated with the function they perform.
Conflicts of interest
Conflicts of interest must be avoided, and employees must disclose any close personal or professional relationships with the entity’s current/prospective clients to the compliance officer.
The firm must have procedures in place to prevent such staff from being involved in compliance tasks related to these clients.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
by John McCarthy Consulting Ltd. | May 18, 2025 | Blog, News
The proposed new EU Anti-Money Laundering Regulation (AMLR) is expected to be effective in Ireland in 2027. This week we look at one aspect of that Regulation relating to AML training.
Article 12 of the AMLR places greater emphasis on AML Training which is a more comprehensive requirement than in the 4th AML Directive. The 4th AML Directive only required AML training for the obliged entity’s employees who were involved in AML compliance.
Under the new proposed AMLR, accountancy firms must ensure that all individuals involved in implementing AML/CFT measures receive adequate training. The reach of the AML training requirement will be much wider than heretofore and accountancy firms will be held to account in a more comprehensive way for their AML training responsibilities.
Those that will need to have the AML training under the AMLR include:
- Employees;
- Agents; and
- Third party contractors.
The AML training should enable these personnel to recognise potential ML/TF activities and know what steps to take when they encounter them.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
by John McCarthy Consulting Ltd. | May 1, 2025 | Blog, News
The new AMLR will have an increased impact on AML governance and responsibilities within firms. It requires:
- a strong internal control framework, including policies, procedures, controls,
- a risk assessment, and
- an independent audit function.
The AMLR also clearly defines
- the compliance manager role and
- the officer role,
- with requirements for their
- appointment
- responsibilities, and
- protection from retaliation.
Strengthened Customer Due Diligence (CDD)
The AMLR largely builds on the existing CDD obligations set out in the 4th AML Directive. The existing transaction threshold that triggers CDD obligations for goods was already reduced from €15,000 to €10,000 since 2010.
Under the new rules, obliged entities carrying out occasional cash transactions that exceed €3,000 will also need to apply client/customer due diligence (CDD) measures.
Accountancy Europe has produced a factsheet that summarises the key provisions of the AMLR and highlights their implications for accountants, auditors, and tax advisors.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
by John McCarthy Consulting Ltd. | May 1, 2025 | Blog, News
As reported in Accountancy Europe the new EU Anti-Money Laundering Regulation (AMLR) is a major milestone in the fight against money laundering (ML) and terrorist financing (TF).
The AMLR provides detailed guidance on standard, simplified, and enhanced due diligence measures, including:
- Standard CDD Measures: identifying and verifying customer and beneficial owner identities, understanding the business relationship, monitoring transactions, and identifying PEPs.
- Simplified Due Diligence (SDD): applicable in low-risk situations, allowing for reduced scrutiny measures.
- Enhanced Due Diligence (EDD): required for higher-risk scenarios, including dealings with PEPs, requiring additional information gathering and scrutiny.
Outsourcing
The AMLR introduces new detailed rules for obliged entities that outsource their AML/CFT tasks, distinguishing the term ‘outsourcing’ clearly from reliance on other obliged entities
Enhanced obligations on beneficial ownership transparency
The requirements for due diligence on beneficial owners have been strengthened, with a refined definition of beneficial ownership to clarify the framework for identifying individuals who ultimately own or control legal entities and arrangements. Ownership interest in a corporate entity is determined by a threshold of 25% or more of shares, voting rights, or other ownership interests.
Obliged entities must also verify whether the customer or beneficial owners are subject to targeted financial sanctions (TFS).
A new definition for politically exposed persons (PEPs)
The AMLR expands the definition of PEPs to encompass “heads of regional and local authorities”, as well as “groupings of municipalities and metropolitan regions”. It also specifies that, for the functions of heads of state, heads of government, ministers, deputy or assistant ministers, and equivalent roles at the Union level or in third countries, siblings are also considered ‘family members’.
EU-wide ban for large cash payments
The Regulation imposes an EU-wide maximum limit of €10,000 for cash payments, whether in single or linked transactions. Member States may set lower limits.
Accountancy Europe has produced a factsheet that summarises the key provisions of the AMLR and highlights their implications for accountants, auditors, and tax advisors.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
by John McCarthy Consulting Ltd. | Apr 18, 2025 | Blog, News
This is the first in a series of three blogs looking at the new AML legislation expected across Europe by 2027.
As reported in Accountancy Europe the new EU Anti-Money Laundering Regulation (AMLR) is a major milestone in the fight against money laundering (ML) and terrorist financing (TF).
The AMLR will substantially impact accountants’, auditors’ and tax advisors’ – and all other so-called obliged entities – daily operations and compliance obligations in the areas of customer due diligence, beneficial ownership transparency, compliance with targeted financial sanctions, suspicious activity reporting, and record retention.
Impact and scope
The AMLR marks a shift from directives (which gave member states choices in implementation methods) to direct application, meaning consistent enforcement across the EU. It affects a broad range of ‘obliged entities’ in financial and non-financial sectors including accountants, auditors, and tax advisors.
The legislation came into effect on 9 July 2024 and will apply from 10 July 2027. This gives professionals time to review and update their existing policies and practices to meet the new requirements. Given the AML rules’ volume and extent of detail, early preparation is crucial for practitioners to assess and plan for the changes ahead.
Accountancy Europe has produced a factsheet that summarises the key provisions of the AMLR and highlights their implications for accountants, auditors, and tax advisors.
For audit cold file reviews and tailored training sessions explaining more about various topics like AML, Audit, FRS 102, please send a mail to john@jmcc.ie.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
