Central Bank highlights weaknesses in Virtual Asset Service Providers' AML/CFT Frameworks.
ENPNewswire-July 13, 2022--Central Bank highlights weaknesses in Virtual Asset Service Providers' AML/CFT Frameworks
(C)2022 ENPublishing - http://www.enpublishing.co.uk
Release date- 12072022 - Central Bank highlights weaknesses in Virtual Asset Service Providers' AML/CFT Frameworks.
Firms in novel areas must ensure their businesses will not be used to launder the proceeds of crime or to finance terrorism.
Central Bank issues a bulletin to virtual asset service providers (VASPs) to assist them in strengthening their applications and frameworks
The Central Bank of Ireland has today, 11 July 2022, published a bulletin in relation to Virtual Asset Service Providers (VASPs), seeking to assist applicant firms to strengthen both their applications for registration and their Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Frameworks.
Effective regulation to prevent financial crime supports innovation in new markets such as virtual assets. The Central Bank plays an important gatekeeper role in Ireland's fight against money laundering and terrorist financing (ML/TF). It seeks to ensure that regulated financial service providers have the necessary risk culture, and risk and control frameworks in place, to minimise the risk of the use of their products or services by criminals for the purposes of ML/TF.
Since 23 April 2021, VASPs are required to comply with the relevant AML/CFT obligations under the Criminal Justice Act 2010 to 2021. Firms that wish to conduct business as a VASP must apply to the Central Bank for registration. The Central Bank is currently progressing the assessment of registration applications, and has provided feedback to 90% of applicants on their proposed AML/CFT frameworks.
Today's bulletin outlines key issues identified through the assessment process, sets out the Central Bank's expectations in relation to key AML/CFT requirements, and advises firms that registered VASPs, as with all supervised entities, will be subject to a supervisory levy.
The Central Bank identified, in the vast majority of applications, a lack of understanding and compliance with key AML/CFT obligations, in addition to significant control weaknesses. The lack of compliance, coupled with control weaknesses, resulted in a significant number of the applicant firms not being able to demonstrate to the Central Bank that they could meet their AML/CFT obligations.
Director of Enforcement & Anti-Money Laundering, Seana Cunningham said...
To continue reading
Request your trial