The term ‘MLRO’ is not mentioned in the legislation but at this stage has become well-established in practice. In this short series of blogs, we explore the role and responsibilities of the MLRO in an accountancy firm.
The MLRO is responsible for the following anti- money laundering (ML) tasks is an accounting firm:
- Implementing and enforcing an appropriate risk-based approach;
- Ensuring that the systems and controls in place are appropriate to manage the risks faced by the firm; and
- Ensuring that the firm complies with the legislation and CCABI Guidance.
The MLRO must also:
- Possess the knowledge, skills and understanding of the firm’s ML risks;
- Complete, and periodically update, the Firm-Wide Risk Assessment (also known as the Business Wide Risk Assessment) under section 30A of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 which outlines and provides an assessment of these risks;
- Receive internal STRs (Suspicious Transaction Reports) from employees and Senior Management in the firm;
- Make the ultimate decisions on behalf of the firm on whether these suspicions need to be reported externally to the Garda And Revenue;
- Report to Garda And Revenue by completing and submitting an external STR on the GoAML system and subsequently with Revenue on ROS.
IT Controls Assessment
Auditors are reminded that there are relatively significant changes in the requirements of ISA 315 Identifying and Assessing the Risks of Material Misstatement for accounting periods commencing 15 December 2021, which in practical terms means, accounting periods Ended 21 December 2022 and later.
Auditors dealing with the audits of entities with such accounting periods affected by these change will need, to adopt new audit programmes and, in additional to the normal audit tests, to also assess the entity’s IT controls (no matter what the size of that entity).
This is a significant new development for auditors of SMEs, in particular, and will be a game changer ion the type of audit documentation and evidence of assessment of such IT controls by the auditor on audit files.
For an easy to implement additional (two page) IT Controls Questionnaire to help document the above process, please click on this link to download immediately for only €60 + VAT.
Please also go to our website to see our:
- Anti-Money Laundering Policies Controls & Procedures Manual (March 2022) – View the Table of Contents click here.
- AML webinar (March 2022) available here, which accompanies the AML Manual. It explains the current legal AML reporting position for accountancy firms and includes a quiz. Upon completion, you receive a CPD Certificate of attendance in your inbox.
- letters of engagement and similar templates. Please visit our site here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items if bought together.
- ISQM TOOLKIT or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard, please contact John McCarthy FCA by e-mail at firstname.lastname@example.org.