Tuesday, October 08 11:36:31
The Central Bank today said it has fined AXA MPS Financial E50,000 and issued a reprimand over breaches of money laundering regulations.
The regulator said it imposed the penalty in relation to two breaches of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
The two breaches identified by the watchdog were firstly that between July 2010 and March 2011 the Firm was in breach of its customer due diligence requirements under sections 33 and 35(1), concerning the identification and verification of customers and beneficial owners. The breach occurred as a result of the Firm's reliance on a third party to carry out its customer due diligence requirements when it was not eligible to do so due to its failure to comply with the pre-condition.
Secondly, that for 18 months, up to January 2012, the Firm was in breach of section 37 which required it to take steps to determine whether a customer, or a beneficial owner connected with the customer or service concerned, residing in a place outside the State, was a politically exposed person or an immediate family member, or a close associate of, a politically exposed person, prior to establishing a business relationship with the customer.
These breaches were identified by the Firm and voluntarily reported by the Firm to the Central Bank in March 2011, the Central Bank stressed.
This is the third settlement by the Central Bank with a firm for breaches of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 in the last 18 months. The Criminal Justice Act 2010 came into force in July 2010, said Central Bank Director of Enforcement, Derville Rowland.
"This area has repeatedly been identified as an enforcement priority throughout 2012 and 2013. The Central Bank expects that all firms that are subject to its oversight manage their business processes to ensure compliance with the Criminal Justice Act 2010 and importantly to be in a position to demonstrate their compliance with the requirements of this law."