Mary Keane, Deputy Director General, Law Society of Ireland

Transcription

1 Mary Keane, Deputy Director General, Law Society of Ireland

2 FATF Evaluation of Ireland

3 Milestones

4 Milestones June Joined Private Sector Consultative Forum August D/Finance Vulnerabilities Questionnaire (to be used in preparing NRA) Nov Meetings/communication with other legal representative bodies (CCBE, Belgian Bar, Austrian Bar, LSEW) Jan Introduced compulsory CPD in AML Feb Publication of MoU re TCSPs April Presentation by FATF Assessors to Private Sector Consultative Forum Completion of FATF Technical Compliance Questionnaire May Completion of FATF Effectiveness Questionnaires Sept Publication of NRA Nov FATF Scoping Note 7-18 Nov FATF Evaluation meetings

5 Private Sector Consultative Forum

6 Private Sector Consultative Forum Terms of Reference "To act as a Consultative forum in conjunction with Ireland's preparations for the FATF Mutual Evaluation Review in 2016 and to continue as a consultation forum on AML/CTF issues thereafter"

7 Private Sector Consultative Forum Monthly meetings Updates from D/Finance Presentations from CAB, FIU, Central Bank Development of a web portal

8 Private Sector Consultative Forum Membership Banks, funds industry, insurance, credit unions, stock exchange, gambling services, payment services, auctioneers, estate agents, wealth management, solicitors, barristers, accountants

9 A Key Decision

10 Preparation

11 Preparation Research FATF reports, published MERs, Scoping Notes, NRAs Meetings D/Finance, D/Justice, CAB, FIU, PSRA Briefings Task Force and Council Consultation CCBE, Belgian Bar, Austrian Bar, LSEW Workshop On draft NRA Action Plan Regulatory and Advisory

12 FATF Questionnaires (April/May 2016) Technical Compliance Effectiveness of Law Society Supervision Understanding of Risk

13 Irish National Risk Assessment (Sept 2016)

14 Irish National Risk Assessment (Sept 2016) Overview 9,900 solicitors, 2,200 firms, 45% sole practitioners, 25% sole principals, 30% 2+ partners Wider legal sector contributed 1.46bn to Irish economy in 2014, second only to telecoms Law Society inspections, 400 firms (18%) per year, risk-based approach, approx 10 reports per year, comprehensive guidance, a telephone Helpline, information updates, compulsory AML training, AML Task Force

15 Irish National Risk Assessment (Sept 2016) Main Vulnerabilities Specialist services/knowledge make solicitors vulnerable to being exploited by criminals Nature and scale of services increase the risk of substantial proceeds being laundered A higher risk of unknowingly facilitating money-laundering through lack of identification of source of funds and ultimate beneficial owner Client accounts, if improperly managed, can significantly heighten risk STR reporting is relatively low - less than 1% of all reports

16 Irish National Risk Assessment (Sept 2016) Overall Risk Medium-High. While awareness and compliance has improved, the nature, scale and variety of services and low level of reporting tend to increase overall risk.

17 FATF Scoping Note (Nov 2016) Areas identified for increased focus The proportion of property transactions conducted through lawyers The level of CDD and STRs reported The resources and expertise of competent authorities (the Law Society) Law Society understanding of the risk-based approach and the risks faced by solicitors The depth of Law Society supervision Law Society guidance and communication with solicitors

18 FATF Evaluation meetings Meeting with practising solicitor - 11 November A brief outline of the type of practice and typical work Relationship with regulator Information/guidance provided by Law Society Describe a standard probate and conveyance Describe the AML risks you would see in both In what circumstances would you be asked to set up a trust? In what circumstances would you be asked to set up a company (an opaque structure)? In what circumstances do you think a solicitor might unwittingly be used for AML purposes? Have you ever made an STR? What recommendations would you make to close any gaps that might exist? Are you aware of the NRA? Do you think it is accurate?

19 FATF Evaluation meetings Meeting with Law Society - 14 November Opening Statement Q&A Scope of regulated profession Controls to ensure admitting fit and proper persons How does the Society perceive and address risk for solicitors Risk-based supervision Monitoring the implementation of policies and procedures Awareness of targeted financial sanctions and PEPs Legal privilege The cycle of investigation and re-investigation Remedial actions/sanctions Relationship with the FIU The Society's wishlist

20 The Result Perhaps

21 The Result Hopefully