Blaine McDaid

Compliance Senior Associate

What is the Consent Regime?

Businesses are expected to use a risk-based approach when considering business relationships to prevent their products and services from being used for the purpose of money laundering (�ML�) or financing of terrorism (�FT�). Where a suspicion has been formed in relation to any property, transaction, or proceeds which may directly or indirectly relate to criminal conduct, consent provides a statutory defense to ML & FT offenses; however, it is not a substitute for reporting entities to discharge their obligations as required under the relevant laws.

When to Seek Consent

The purpose of seeking consent is to seek a defense to an �act' that could constitute an offense under the law. If a reporting entity is being asked to carry out an act that may comprise any concealment, conversion, or transfer of such property or its removal from the Bailiwick, they must seek a defense from the FIU before they undertake that act. Failure to provide sufficient details will delay the FIU's decision-making process. There is no statutory time limit in which the FIU must respond to a consent request. However, the FIU will aim to respond to the request within 14 working days of the submission.

No Consent

The FIU is entitled to withhold consent as long as it has grounds to suspect that an act involves funds that represent the proceeds of crime or comprise terrorist property. If a business proceeds with the requested activity following consent being refused, they will have no statutory defense to a charge of ML or TF. The FIU can reconsider the original �No Consent' if the business provides new information or information they were previously unaware of to the FIU, which they believe may negate the original suspicion.

�Consent Granted' Letter

Where consent has been granted, the business will have a defense to a ML or TF offense, only in relation to the act specified in the request if the business chooses to undertake the proposed act. Any changes in circumstances thereafter may impact the validity of the defense. Granted Consent does not imply that the FIU approves of the circumstances within the disclosure or that the associated property or funds are not the proceeds of crime.

Ongoing Obligations & Tipping Off

Once a SAR has been submitted to the FIU, it does not release you from your ongoing obligations in respect of all future transactions. Further considerations may include how to negate the suspicion or how to appropriately terminate the business relationship. Under no circumstances must you inform your client or customer that you have submitted a SAR to the FIU, or that you intend to submit a SAR. If you do inform your client as such, you could be committing an offense under the relevant legislation.

The FIU guidance can be found here.

Download the PDF version here.

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