by John McCarthy Consulting Ltd. | Jan 28, 2025 | Blog, News
In last week’s blog we looked at higher risk clients and PEPs in particular, who might present a higher ML risk to the accountancy sector.
One of the most reliable sources to help identify such risk, especially in the case of new clients is the Accountancy AML Supervisors Group Risk Outlook (updated July 2024) which outlines some circumstances where there might be higher risk of money laundering or terrorist financing in the accountancy sector.
This week our focus is on other client sectors that might present particular risks over and above other clients. According to the AASG, these include:
- arms dealers;
- property transactions with unclear source of funds (including remote sales);
- transport/logistics businesses;
- legal services;
- art market participants;
- financial services; and the
- luxury goods market.
Sectors such as the arms trade can be linked with corruption, money laundering or terrorism. Large property transactions, where the source of funds is unclear, have also been linked to laundering the proceeds of crime.
There is existing HMRC guidance on Understanding risks and taking action for estate agency and letting agency businesses provides further red flag indicators. Firms should also ensure that where overseas entities own UK property, the beneficial owner must be properly recorded on the Overseas Entities Register and assess the risk that a client may try to transfer ownership to avoid registering their beneficial ownership.
There has been a rise in cases reported in the press where transport and logistics businesses have been involved in modern slavery and human trafficking cases. These businesses have the potential to be involved in smuggling (e.g. alcohol, fuel, tobacco etc.).
Legal services, art market participants and financial services are ranked as being at higher risk of money laundering, along with luxury goods markets (high value goods sold for, cash exceeding €10,000 in a single or linked series of financial transactions) which can provide a route to transfer value or assets from sanctioned individuals to avoid international sanctions.
Firms should employ sufficient professional scepticism when performing services or analysing the books and records of clients in the above sectors.
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 10, 2021 | Blog, News
A recent The Irish Times report shows that recorded money laundering crimes more than doubled since the start of Covid-19 compared to the previous year.
524 money-laundering crimes were recorded in 2020, up from 234 in 2019. There were only 83 money laundering offences reported in 2018, and less than 50 a year between 2012 and 2017.
The Garda and Revenue Commissioners received 28,865 suspicious transaction reports (STRs) in 2020. The Revenue state that the yield from compliance interventions directly linked to STRs was €1.6 million.
The number of STRs represents a 13 per cent increase on the 2019 total. This trend represents the changing face of crime in Ireland, more of which is taking place online.
Are you up to date with your Anti-Money Laundering (AML) responsibilities? The law changed on 23 April and we have published our latest AML Policies, Controls & Procedures Manual for 2021.
The Manual follows the enactment of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 now fully in force. Future blogs will look at various parts of the new and existing provisions of this legislation.
For more blogs please visit this link and for our publications and manuals and services click here.
by John McCarthy Consulting Ltd. | May 4, 2021 | Blog, News
Readers of our regular blog will be delighted to hear that our new Anti-Money Laundering & Terrorist Financing Policies Controls & Procedures Manual is just published and available here on our website for immediate download. This is the first available 2021 AML Manual for Accountants on the Irish market.
The Manual follows the enactment of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 which has come into effect on two dates:
- 23 April 2021 for all parts of the Act except Section 8 dealing with express trusts; and
- 24 April 2021 – Section 8 is enacted requiring express trusts to keep a beneficial ownership register.
In future blogs we will look at various parts of the new and existing provisions of this legislation.
For more blogs please visit this link and for our publications and manuals and services click here.
by John McCarthy Consulting Ltd. | Apr 13, 2021 | Blog, News
In our last blog, we mentioned the enactment of the latest AML legislation in Ireland which is the ‘Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act, 2021’. In the coming weeks we are going to take a look at the various provisions of the new legislation.
Among the provisions of the new Act is one that amends Schedule 4 of the Act of 2010 to specify further red flags, for transactions that could pose a higher risk of money laundering and/or terrorist financing. The 2021 law is yet to be commenced by statutory instrument.
A higher risk is posed where:
- a customer is a third-country national who applies for residence rights or citizenship in the State in exchange for capital transfers, purchase of property or government bonds, or investment in corporate entities in the State;
- a product, service, transaction or delivery channel involves the use of non-face-to-face business relationships without the use of certain safeguards such as electronic identification means, relevant trust services or other secure, remote or electronic, identification processes that are officially regulated, recognised, approved or accepted;
- a transaction relates to oil, arms, precious metals, tobacco products, cultural artefacts and items of archaeological, historical, cultural and religious importance, or of rare or scientific value, including ivory and protected species.
For more blogs please visit this link and for our publications and manuals and services click here.
by John McCarthy Consulting Ltd. | Apr 6, 2021 | Blog, News
Are your engagement letters up to date? Probably not!
No sooner had we given our letters of engagement on the website a refresh for Spring 2021, than the Government passed into law the latest anti-money laundering legislation. The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 which is number 3 of 2021 was passed into law on 18 March 2021. It awaits commencement by the Minister.
Once it comes into force it will replace the earlier Criminal Justice (Money Laundering and Terrorist Financing) Acts, 2010 to 2018. The new title of the Irish anti-money laundering legislation is the ‘Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021’.
The new legislation primarily deals with cryptocurrency, virtual asset providers (VASPs) and estate agents letting property for €10,000 per month or more, high value art dealers and tax advisers (extending the scope of persons who fall within the definition of ‘tax adviser’), among other matters. Previous legislation only dealt with estate agents buying/selling property.
Readers please note that you will need to change the references on your letters of engagement to ‘Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021’ with immediate effect and update AML Manuals and training etc.
A later blog will go into more detail about the changes.
At www.jmcc.ie we have refreshed all of our letters or engagement templates for these references and we keep adding new templates which may be viewed at this link.
