{"id":9415,"date":"2019-09-06T08:40:05","date_gmt":"2019-09-06T12:40:05","guid":{"rendered":"http:\/\/irishexaminerusa.com\/wp\/?p=9415"},"modified":"2019-09-08T11:43:10","modified_gmt":"2019-09-08T15:43:10","slug":"irish-financial-institutions-urged-to-protect-firms-against-money-laundering","status":"publish","type":"post","link":"https:\/\/irishexaminerusa.com\/wp\/?p=9415","title":{"rendered":"Irish Financial Institutions Urged to Protect Firms Against Money Laundering"},"content":{"rendered":"

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Irish Central Bank’s Director General of Financial Conduct Derville Rowland<\/figcaption><\/figure>Irish financial institutions have been urged to protect firms against drug dealers, human traffickers, terrorists and crime gangs who use the financial system.<\/p>\n

The Central Bank of Ireland has published guidelines to help financial firms prevent money laundering and the financing of terrorism.<\/p>\n

It is estimated that between 2-5% of global GDP is laundered each year \u2013 between \u20ac715 billion and \u20ac1.87 trillion.<\/p>\n

Speaking at the launch in Dublin, director general of financial conduct Derville Rowland said: \u201cFirms must adopt a risk-based approach to fulfilling their obligations and ensure that their controls, policies and procedures are fit for purpose, up-to-date, tested and kept under constant review and scrutiny.<\/p>\n

\u201cAt the Central Bank, we believe that effective regulation in this area strengthens the integrity of the financial sector, and contributes to the safety and security of citizens, by preventing drug dealers, and those engaged in human trafficking, terrorist attacks and organised crime, from using the financial system to support these activities.<\/p>\n

\u201cLives can be saved, if such criminal activity is curtailed.<\/p>\n

\u201cWhile compliance can be burdensome at times, it means that firms are playing their part in stopping the regulated financial system being used for criminal means.\u201d<\/p>\n

In a report published this year, the Basel AML Index \u2013 an independent annual ranking that assesses the risk of money laundering and terrorist financing \u2013 found Ireland to be one of the best performing countries in relation to the transparency of public disclosures, the openness of budgets and public accountability.<\/p>\n

Ms Rowland also said that the categories of people who can be regarded as politically exposed now include members of the governing bodies of political parties.<\/p>\n

\u201cThat\u2019s because people who hold \u2013 or have held \u2013 a high political profile can pose a higher money laundering risk to firms as their position may make them vulnerable to corruption such as accepting bribes or contributions to election campaigns and political parties in return for advantages,\u201d she added.<\/p>\n

Firms have been warned to consider if their customers have any political connections or links to sectors that are commonly associated with higher corruption risk, including construction, pharmaceuticals and healthcare, arms trade and defense and public procurement.<\/p>\n

The guidelines also urge businesses to be aware if a customer holds a prominent position or enjoys a \u201chigh public profile\u201d that might enable them to abuse their position for private gain.<\/p>\n

It states: \u201cIf they are a senior local or regional public officials with the ability to influence the awarding of public contracts, or decision-making members of high profile sporting bodies, or individuals that are known to influence the government and other senior decision-makers.\u201d<\/p>\n

\u201cFinancial institutions must know their customers, understand their customer profiles, monitor the way accounts are used and make reports of suspicions to An Garda S\u00edoch\u00e1na, and the Revenue Commissioners where appropriate,\u201d she added.<\/p>\n

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