CUDA attended the AML Private Sector Consultative Forum (PSCF) last month and provided an update to your CUs. The Department of Finance (DOF) and Central Bank were in attendance. CUDA wish to give you an update in relation to the Beneficial Ownership Register, requirements under the 4th EU Money Laundering Directive and European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2016.
CUDA previously communicated with your Credit Union, in February 2017 and provided guidance in relation to the setting up the Beneficial Ownership Register (BOR) at your CU. There have been significant delays at government level in the setting up of the Beneficial Ownership Register due to delays in implementing legislative provisions etc. Ireland has been under significant pressure to finalise this element of the 4th AMLD 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 CU.
While CUs 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 CUs.
- 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.
- 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
- Date of Birth
- 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.