18 - Due Diligence and Penalties Flashcards
What are the levels of due dilligence checks under The Money Laundering, Terrorist Financing and Transfer of Funds Regulation, 2017 ?
- Customer Due Dilligence
- Enhanced Due Dilligence
What comes under “Customer Due Dilligence”?
- Identify the client and verify their identity
- Make reasonable endeavours to identify the beneficial owners
- For company, its name, company number and address
- Obtain information on the purpose and intended nature of the business relationship and proposed funding arrangements
What comes under Enhanced Due Dilligence?
Require additional evidence and monitor if a transaction or business relationship invloves:
* a person established in a “high risk third country”
* A PEP
* A famility member/business associate of a PEP
What is a PEP, and what are you required to carry out when working with one?
A politically exposed person. You are required to undertake further checks or ‘Enhanced Due Diligence’ (EDD) when working with one.
What are the penalties for to comply with The Money Laundering, Terrorist Financing and Transfer of Funds Regulation, 2017?
- Maximum 14 years prison sentence and/or unlimited fine for assisting with money laundering
- Maximum 5 years prison sentence and/or unlimited fine for tipping off a person by informing them that they are under suspicion for money laundering or failing to report suspicion.
What are some of the typical requirements for money laundering checks for CDD?
What are some red flags associated with potential money laundering?
- inability or unwillingness to provide identity documents
- Changes to parties during transactions
- Unusual transaction features i.e. unexpected urgency, potential loss-making
- Payment of fees, purcahse or rental monies in unusual currencies
What is the limit on cash acceptance under Money Laundering Terrorist Financing and Transfer of Funds (Information on the Payer) 2017?
10,000 euros
If askes about the acceptance of any cash, gift of hospitality, consider the following:
