Procedures and Policies for AML Compliance
Procedures and Policies for AML Compliance: Senior Management are obliged to ensure that the firm has procedures and controls in place to demonstrate compliance with all aspects of the Act and approve them.
- Senior Management must have a clearly defined process in place for the formal review and approval, at least annually, of the policies and procedures at appropriate levels.
- Management must clearly set out all approved policies and procedures to enable staff to apply them in practice and ensure that all staff adhere to them.
- All procedures should be compliant with the Central Bank’s core and sectoral guidance notes.
These internal policies and procedures should include:
- measures to be taken to keep documents and information relating to customers up to date.
- additional measures to be taken where there are reasonable grounds to believe that the circumstances relating to a customer, beneficial owner, service, product or transaction may present a heightened risk of money laundering or terrorist financing. The intermediary shall, in respect of that customer or beneficial owner, apply additional measures.
- measures to be taken to prevent the use of money laundering or terrorist financing of products/transactions that could favour or facilitate anonymity.
- monitor customers and transactions against both the EU and UN Sanctions Committee lists relating to terrorism.
- Intermediaries are required to keep records evidencing the procedures applied and the information obtained, when carrying out CDD on customers for a period of at least 5 yrs after the business relationship with their customer has ended.
(However, the Consumer Protection Code requires records to be kept for 6 yrs from date of last transaction with client.)
- Record keeping is an essential part of the evidence trail and sufficient processes must be put in place to ensure that records are adequately kept.
- Customer information collected to comply with the requirements of Legislation; and
- Information regarding transactions undertaken by customers.
Possible formats in which records can be retained include one or more of the following:
- Original documents
- Photocopies of original documents
- On microfiche
- In scanned form
- In computerised or electronic form
Intermediaries may keep such records wholly or partly in electronic form only if they are capable of being reproduced in a written form. All records should be capable of being reproduced in the State as per legislation for a period not less than 6 years.