Central Bank of Ireland Requires VASPs to Demonstrate Robust AML/CFT Control Framework

The Central Bank of Ireland today has 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.

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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, Seána Cunningham said:"All firms regulated and supervised by the Central Bank for AML/CFT purposes must be able to demonstrate a robust AML/CFT control framework that complies with the relevant obligations. The Central Bank will only register a firm when it is satisfied that the firm can meet its AML/CFT obligations on an ongoing basis."

"All current and potential VASP applicants should review the content of the bulletin and take actions to rectify weaknesses, as relevant. Firms undertaking VASP activities are also reminded that a failure to register may result in significant criminal and/or administrative sanctions,"Seána Cunningham added."VASPs are supervised by the Central Bank for AML/CFT purposes only. The Central Bank's mandate with respect to VASPs does not extend to consumer protection."