Sanctions Reporting

All natural and legal persons must ensure that they are compliant with financial sanctions as soon as they are adopted. To ensure compliance with EU financial sanctions, it is necessary to monitor the EU Financial Sanctions lists.

Compliance with financial sanctions includes, for example conducting ongoing monitoring of transactions and customers.  This is particularly relevant for credit and financial institutions.

What to do if a match or “hit" occurs

In the event that a match or a “hit” occurs against a sanctioned person, entity or body, credit and financial institutions must immediately freeze the account(s) and/or stop the transaction(s) and report the “hit” to the Central Bank of Ireland, using the below Sanctions Return Form, along with other relevant information. This Sanctions Return Form, and relevant information, should be submitted by email to [email protected].

Before submitting the Sanctions Return Form to the Central Bank, credit and financial institutions should take reasonable steps to ensure that the person, entity or body identified is the same person, entity or body as that listed in the relevant sanctions list, for example by verifying the name with other identifying information.  

The Central Bank is obliged to report the information requested in the Sanctions Return Form to the European Commission (via the Department of Foreign Affairs).  Accordingly, in order to comply with the obligation to report frozen accounts/transactions to the Central Bank, it is important that credit and financial institutions ensure that the Sanctions Return Form is fully completed prior to submission.  Incomplete Forms will be returned to the submitter.

Sanctions Return Form | xls 24 KB

Reporting by credit institutions of deposits exceeding EUR 100,000

EU sanctions measures adopted in response to the crisis in Ukraine include provisions that prohibit the acceptance of certain deposits that exceed EUR 100,000, with some exceptions (the “Deposit Prohibition”).  These provisions apply to:

  • Russian nationals or natural persons residing in Russia, or legal persons, entities or bodies established in Russia (Article 5b of Council Regulation (EU) 833/2014); and
  • Belarusian nationals or natural persons residing in Belarus, or legal persons, entities or bodies established in Belarus (Article 1u of Council Regulation (EU) 765/2006),

if the total value of deposits of the natural or legal person, entity or body per credit institution exceeds EUR 100,000, subject to certain exceptions.

Article 5g of Council Regulation (EU) 833/2014 and Article 1z of Council Regulation (EU) 765/2006 imposes reporting obligations on credit institutions in this regard.  Credit institutions are required to:

  1. supply to the national competent authority of the Member State where they are located or to the Commission by no later than 27 May 2022, a list of deposits exceeding EUR 100,000 held by Russian/Belarusian nationals or natural persons residing in Russia/Belarus, or by legal persons, entities or bodies established in Russia/Belarus. They must also provide updates regarding the amounts of such deposits every 12 months.
  2. supply to the national competent authority of the Member State where they are located information on deposits exceeding EUR 100,000 held by Russian/Belarusian nationals or natural persons residing in Russia/Belarus who have acquired the citizenship of a Member State or residence rights in a Member State through an investor citizenship scheme or an investor residence scheme.

In order to report this information to the Central Bank , credit institutions should complete the below Deposit Prohibition Reporting Form. This Reporting Form, and any relevant information, should be submitted by email to [email protected].

The Central Bank is obliged to report the information requested in the Deposit Prohibition Reporting Form to the European Commission (via the Department of Foreign Affairs).  Accordingly, in order to comply with this obligation, it is important that credit institutions ensure that the Deposit Prohibition Reporting Form is fully completed prior to submission.

Credit institutions only need to submit a Deposit Prohibition Reporting Form to the Central Bank if the deposits that are held by it exceed EUR 100,000. For example, if a person has a deposit balance of EUR 80,000, this does not need to be reported.  Therefore, it is not necessary to submit a “nil” return.

Where a credit institution is not in a position to submit the Deposit Prohibition Reporting Form by the set deadline, for example, the information is still being collected, it shall notify the Central Bank of the delay, together with the reasons and a proposed alternative deadline.  The Central Bank will consider such submissions on a case-by-case basis. Such correspondence should be sent by email to [email protected].

In this regard,  credit institutions should consider the FAQs published by the European Commission, in particular those relating to “Deposits” as set out on the Commission’s webpage Sanctions adopted following Russia’s military aggression against Ukraine. Credit institutions may also wish to refer to information published by the European Banking Authority on 10 May 2022. The EBA has designed an efficient framework for reporting of deposits subject to Russian and Belarusian economic sanctions.

Please note that details of deposits of those who are exempt under Article 5b(3) of Council Regulation (EU) 833/2014 and Article 1u(2) of Council Regulation (EC) No 765/2006 do not have to be reported to the Central Bank.

 

Deposit Prohibition Reporting Form | xls 21 KB