by John McCarthy Consulting Ltd. | Apr 3, 2025 | Blog, News
The Central Bank published some new data in a report about fraudulent payments in January this year which did not get the full attention it deserves. The data on payment fraud reveals that Irish fraud rates are below the EU averages except for card payments. Most fraudulent payments are sent to fraudsters’ accounts located outside Ireland with fraudulent credit transfers being the most popular method.
Fraudsters continually adopt new ways to exploit digital systems and bypass security measures, costing businesses and individuals millions of euros every year. Common methods include phishing, where fake emails or text messages trick people into revealing personal information, psychological manipulation of the payer to send money via social networks or impersonating as a trusted party, making unauthorised payments using lost or stolen cards.
The report shows that fraudulent payments on the rise but fraud rates remains low. The rate of fraud in Ireland as a share of all transactions is low. By value, the rate is 0.001%, and by volume, the rate is 0.01%, with the latter being equivalent to 1 in 10,000 payment transactions impacted by fraud.
The total value of fraudulent payments rose by 26% in 2023, increasing to €126 million from €100 million in 2022. Credit transfers and card payments accounted for the majority of all fraud.
As per the published data on payment statistics, credit transfers are the largest in terms of value and often used for large value payments compared with other payment methods in Ireland. This also applies to fraudulent payments.
Approximately 60% of the value of fraud, amounting to €70 million in 2023, was made through credit transfer.
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. | Mar 19, 2025 | Blog, News
For anti-money laundering purposes, the Central Bank has, since 2023, operated a Register Of Bank Accounts and Safety Deposit Boxes called the Ireland Safe Deposit Box Bank and Payment Accounts Register, otherwise known as ISBAR.
The register identifies the holders and beneficial owners of:
- bank and payment accounts and
- safe-deposit boxes in Ireland.
for the purpose of establishing links between suspicious transactions and underlying criminal activity.
The register, operated by the Central Bank of Ireland, assists competent authorities seeking to prevent and combat Money Laundering (ML) and Terrorist Financing (TF). The register ensures that flows of money can be properly traced to individuals, entities and illicit networks at an early stage.
Information Contained on the Register
For the purpose of bank or payment accounts the following information is maintained on the register:
IBAN, Account name, Date of account opening, Date of account closure, beneficial owners, forename, surname, date of birth and address of natural owners and if not a natural person, the name and registered address.
For the purposes of safe deposit boxes, the following information is maintained on the register:
- Lessee (natural person) – Forename and surname of the lessee, date of birth of the lessee, address of the lessee and lease period
- Lessee (not a natural person) – Name of the lessee, registered address of the lessee and lease period.
For tailored training sessions explaining more about the ISAs, 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. | Jul 27, 2018 | News
In a recent sanction by the Central Bank, attention is being drawn to the fact that anti-money laundering (AML) training needs to be focused, specific and ongoing. In the sanction report, a financial services firm was fined €443,000 in June 2018 for failures that included lack of appropriate AML training.
The sanctions report reads: ‘it had inadequate policies and procedures to monitor transactions, detect and report money laundering and provide its staff with appropriate training’.
In addition, the Central Bank found that the company:
- failed in many areas to provide the appropriate amount, level, and accuracy of training for its staff;
- training was not focused on the specific roles and responsibilities of staff (especially at Money Laundering Reporting Officer (MLRO) level;
- training did not amount to a sufficient amount of time to train them on how to identify suspicious activity;
- the entity failed to provide training to all client facing staff; and
- there was a failure to ensure staff were instructed on AML and counter financing of terrorism (CFT)-related law, and a failure to provide ongoing training.
From 15 July 2010 to 10 September 2012, the firm breached section 54(6) of the Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010, because it failed to train anyone involved in the conduct of its business in AML/CFT law or provide on-going instruction on identifying suspicious activity.
Over a three-year period, the firm had held one-hour annual AML/CFT training session for staff. The Central Bank stated the ‘training was sufficient to introduce staff to AML/CFT law but in further breach of section 54(6), it was insufficient to train them to identify suspicious activity. In addition, the scope of the training was not tailored to specific roles, including the Firm’s MLRO’.
To hear more about the AML requirements that must be applied by accounting firms, including a suggested spreadsheet to control all the main topics, come to our next AML seminar on Tuesday 25 September 2018 at the Talbot Hotel Stillorgan, County Dublin.
Booking is here via our website. Cost is €105 per delegate or €280 for three delegates from the same office.
by John McCarthy Consulting Ltd. | Sep 2, 2016 | News
Since the implementation of the new Companies Act, 2014 on 1 June 2015, the financial statements of regulated insurance intermediaries and investment brokers will no longer qualify for certain exemptions.
Those affected are those carrying on business under the Insurance Act, 1989 or otherwise authorised by the Central Bank. The full list of entities affected is on the 5th Schedule of the Companies Act, 2014
This applies to financial statements approved by the directors on/after 1 June 2015 and means they:
1. Are not allowed to qualify for the ‘small’ or ‘medium’ thresholds as defined in company law;
2. Cannot abridge their financial statements. They must file full accounts with the CRO;
3. Cannot avail of audit exemption;
4. Cannot avail of the FRSSE (the Financial Reporting Standard for Smaller Entities (January 2015);
5. Must apply FRS 102 in full with effect from financial years commencing on/after 1 January 2015 (including a compulsory cash flow statement);
6. Must disclose auditor remuneration in the four categories required by section 322 of the Companies Act, 2014 (along with comparatives);
7. Cannot use FRS 105, the proposed micro-entities standard, when it is endorsed in Irish company law (expected to be signed off later this year);
8. Will not be allowed adopt section 1A of FRS 102 even after it has been endorsed in Irish company law (expected to be signed off later this year for certain other entities).
9. Will not be allowed use the PASE (Provisions Available for Smaller Entities) as the entity is deemed to be large.
To hear more about financial reporting developments in FRS 102 and in FRS 102 for Charities (and other Not for Profit Entities) including the Charities SORP please come to our upcoming training days in Dublin and Cork. See our CPD courses page for the latest news.
