Importance of Staff Training for AML and Reporting

Importance of Staff Training for AML and Reporting

Staff Training

Intermediaries must ensure that all staff receive on-going training in relation to their AML and combating of terrorist financing obligations.
Staff should receive tailored training to reflect their role within the firm.
Training should be consistent with firms policies & procedures.
Failure by the employer to provide training is an offence under the requirements.
A formal training schedule should be developed and maintained to ensure all relevant staff are adequately trained at least annually.
Adequate records in relation to staff training should be retained for all internal & external courses attended for a period of 5 years

AML Reporting by Staff

Requirement to have a documented internal reporting process for staff to report a suspicious transaction – it should provide guidance on how to complete and submit such reports.
There should be documented timelines set by the brokerage in relation to the filing of the Suspicious Transaction Reports (STR).
Staff reports must be made to the Money Laundering Reporting Officer (MLRO) when the staff member knows, suspects or has reasonable grounds to suspect that money laundering or terrorist financing is being or has been committed or attempted
Staff reports should include appropriate details of the customer who is the subject of concern and a statement containing as much of the information, giving rise to the knowledge or suspicion, as possible.
All reports submitted via the internal reporting process should be recorded.
The MLRO will then decide whether to make the firm’s report to the Garda Bureau of Fraud Investigation and the Revenue Commissioners.
If the MLRO decides not to make an external report the outcome and reasons for not doing so should be recorded and retained.
Presenter should provide practical examples of situations which staff might encounter which would warrant a report.
Have written policies and procedures in relation to reporting suspicions that may arise as a result of a failure on the part of the customer to provide the required or updated CDD documentation/information.

If the MLRO decides an external report needs to be made to the Garda Bureau of Fraud Investigation and the Revenue Commissioners. The following information should be contained in the report:

The information on which the designated person’s knowledge, suspicion or reasonable grounds are based;
The identity of the suspected person;
The whereabouts of the property that is the subject of the money laundering or the funds that are the subject of the terrorist financing;
Any other relevant information.
A designated person may be directed in writing by a member of the Gardaí, not below the rank superintendent, not to carry out a specified service or transaction for a period not exceeding seven days.
A District Court judge may order a designated person not to carry out a specified service or transaction for a period not exceeding 28 days.

A designated person may only proceed with a suspicious transaction or service prior to the sending of the report to the Gardaí and the Revenue Commissioners where:

it is not practicable to delay or stop the transaction/service from proceeding; or
the designated person is of the opinion that failure to proceed with the transaction or service may result in the other person suspecting that a report may be made or that an investigation may be commenced or is in the course of being commenced.
You must not disclose to the customer concerned or other third persons that a report has been made to the Gardai in relation to suspicions of money laundering or terrorist financing.
Designated persons, employees and directors are legally prohibited from tipping off.
Designated persons, employees and director are legally indemnified, in respect of any report made to Gardaí or Revenue Commissioners in good faith, in relation to a suspicion of money laundering of terrorist financing.

Role of Money Laundering Reporting Officer (MLRO)

Holds a pre-approval controlled function (PCF) in the context of the Central Bank Reform Act 2010
Has a significant degree of responsibility and should be familiar with relevant aspects of the Act and these guidelines.
He/she is required to determine whether the information or other matters contained in the suspicious transaction he/she has received, via any internal reporting procedure, merit the making of a report to the FIU (Fraud Investigation Unit) and the Revenue Commissioners.
Maintenance of a log of any suspicious transactions, including details where it was decided not to make a report to FIU & Revenue Commissioners. The reasons for not doing so should be recorded.

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