Banks need to do more to identify and tackle money laundering and the potential financing of terrorism, according to the Central Bank.
In a report into firms’ compliance with money laundering regulations, the authority highlights a number of issues including; a lack of proper risk assessment and deficiencies in the screening of certain customers by some companies.
The Central Bank said that, following a series of on-site inspections in 2013 and 2014, it also found that many were failing to adhere to their own policies around money laundering and terrorism financing, while proper training was often unavailable.
It said that “satisfactory processes and controls” were found in some areas but the number and nature of the issues identified showed more work needed to be done.
While the banking sector in Ireland is the specific focus of the report, many of the issues raised are relevant to the broader financial services sector in Ireland,” said the Central Bank’s head of anti-money laundering, Domhnall Cullinan.
“The Central Bank expects all financial and credit institutions to carefully consider the issues raised in the report.”