Submission #30

Irish Funds

a) Do you consider that these guidelines are conducive to firms adopting risk-based, proportionate and effective AML/CFT policies and procedures in line with the requirements set out in Directive (EU) 2015/849?

Yes – we believe by adding detail and giving examples to the requirements set out in Directive (EU) 2015/849 that the guidelines are conducive to firms adopting risk-based, proportionate and effective AML/CFT policies and procedures.

b) Do you consider that these guidelines are conducive to competent authorities effectively monitoring firms’ compliance with applicable AML/CFT requirements in relation to individual risk assessments and the application of both simplified and enhanced customer due diligence measures?

We believe that the guidelines are conducive to competent authorities monitoring of firms’ compliance.

We welcome the preparation of pan European Guidelines in this area and believe that the joint ESA’s should, as much as possible, seek to ensure that the Guidelines are implemented and interpreted in a consistent way across jurisdictions.

Lack of jurisdictional consistency on AML/CTF matters can cause complexity and confusion to international investors and may lead to a situation where they favour one jurisdiction over another due to a perceived lighter burden for provision of information and documentation.

c) The guidelines in Title III of this consultation paper are organised by types of business. Respondents to this consultation paper are invited to express their views on whether such an approach gives sufficient clarity on the scope of application of the AMLD to the various entities subject to its requirements or whether it would be preferable to follow a legally-driven classification of the various sectors; for example, for the asset management sector, this would mean referring to entities covered by Directive 2009/65/EC and Directive 2011/61/EU and for the individual portfolio management or investment advice activities, or entities providing other investment services or activities, to entities covered by Directive 2014/65/EU.

We support the current approach in Title II as it improves clarity of requirements for each business section. We believe that a legally-driven classification of the various sectors would be less easy to follow.

Upload files 2016 01 IF Resposne to ESA Consultation - AML Risk Factor Guidelines Final.pdf

Name of organisation Irish Funds