CUDA attended the AML Private Sector Consultative Forum (PSCF) last month and provided an update to you by email. The Department of Finance and Central Bank were in attendance. CUDA wish to give you an update in relation to the Beneficial Ownership Register (BOR), requirements under the 4th EU Money Laundering Directive and European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2016.
We previously communicated with you, back in February ’17, and provided guidance in relation to the setting up the BOR at your credit union. There has been significant delays at government level in the setting up of the BOR due to delays in implementing legislative provisions. Ireland has been under significant pressure to finalise this element of the 4thAMLD and EU infringements are imminent if Ireland cannot comply asap. Draft regulations on Beneficial Ownership of Corporate Entities Regulations 2019 have already been circulated to your credit union.
While credit unions are unlikely to be as significantly impacted as other financial institutions, a number of requirements were set out in the 2017 guidance. The following is a summary of requirements for credit unions:
1. Establish the beneficial owners of the credit union
Establish the beneficial owners of the credit union. For the purposes of the Regulations, a “beneficial owner” is a person who ultimately owns or controls the relevant entity, in this case the credit union….. The credit union must, at a minimum, record the information in respect of each director and the chief executive officer/manager of the credit union in the Register as its beneficial owners.
2. Obtain the required information and enter it on the Beneficial Ownership Register
When the credit union has established its beneficial ownership, the requisite information and supporting documentation for the purposes of the Regulations must be obtained from them and entered on to the Register. As this is most likely to apply to the senior managing officials of the credit union, the following sets out the matters that should be included in respect of them• Name • Date of Birth• Nationality; • Residential Address;• Statement of the nature and extent of interest held by that beneficial owner (We would suggest that the position held by the person in the credit union could be included here).• Date on which that person was entered in the Register as a beneficial owner; and• Date on which that person ceases to be a beneficial owner (whenever applicable).• PPSN — It is noted in the new draft regulations that a further requirement for PPSN is now also included and hence will need to be captured on the beneficial ownership register.
Companies Registration Office (CRO) will host the BOR. A Registrar of Beneficial Ownership for Companies and Industrial & Provident Societies will be appointed. An office known as the Registrar of Beneficial Owners will be established to oversee the Register. This will be alegally separate office to the CRO. The register will be opened within three months from thesigning of the Statutory Instrument which is expected in the short-term. While companies will be required to file their beneficial ownership information within six months of the opening of the register, there is no indication on what timeframe will apply in relation to credit unions. Also, it is unclear, how often information will be updated to the BOR. As more information emerges in this regard, we will keep you posted.
The Registrar of Beneficial Owners will launch a media awareness campaign which will coincide with the commencement of the BOR.
Since the previous circulation to your credit union, a number of concerns have emerged, particularly in relation to the requirement for collection of “residential address information”.CUDA has raised this matter with the AML Private Sector Consultative Forum and also with An Garda Siochana HQ. We will keep you informed of developments on this matter.
Access to the BOR
Relevant Third Parties will have access to BOR information. This will be provided on a twotier basis.• T1 – FIU and State Competent Authorities will have full unrestricted access;• T2 – Public obligated entities/others. The level of access is unclear at this time; however, we have been advised that fees/charges will apply
Other Matters on the BOR• The Department of Finance or the Registrar have no plans to issue guidance on the BOR at this time, however if queries emerge they are prepared to provide answers as required.• There was significant concern from other financial institutions on the requirement to provide PPSN for the BOR. In many cases, shareholder interest may be resident outside Ireland and PPSN would not apply, so consideration that ITIN or other identification could be used. While this may not be a concern for credit unions, there was also concern that the requirement to collect verification documentation of PINs/ITINs would be problematic.
CUDA will continue to update you as we get more information. For now, and for the purpose of potential CBI AML inspection, please ensure that you maintain an up to date Credit UnionBOR in the event of being asked to produce same by a CBI AML team. If you require further information on this, please email to firstname.lastname@example.org or contact the CUDA office.