Read about changes to parental leave, anti-money laundering requirements including the new requirements for trusts, and sustainable reporting by large companies.

Family Leave and Miscellaneous Provisions Act 2021

The Family Leave and Miscellaneous Provisions Act, 2021 entitles working parents to an additional three weeks of paid parents leave for each parent. Previously parents were entitled to just two weeks of Parent Leave. It also extends the period in which the leave can be taken to the first two years after the birth or adoption of a child. The leave is non-transferrable between parents to ensure that both parents are encouraged and supported in taking time out from work with their child. It also removes an anomaly whereby same sex couples were treated differently to heterosexual couples. Note that Parents Leave is different to Parental Leave, Maternity leave and Paternity Leave. A summary of all the provisions in respect of leave for new parents is at this link.  

European Union (Anti-money Laundering: Beneficial Ownership of Trusts) Regulations 2021.

The Regulation applies to certain trusts where the trustees are resident in the State, or which is otherwise administered in the State, or the trust owns a business or land in the state. The trustees of such trusts are now required to obtain and record beneficial ownership information in the trusts beneficial ownership register and to make that information available to An Garda Síochána; the Revenue Commissioners; a competent authority; or the Criminal Assets Bureau. The trustees also need to give access to the register to any designated person with whom they have an occasional transaction (i.e. a bank or accountant). There are certain provisions with respect to keeping the trusts beneficial ownership register up to date.

Revenue will set up and maintain a central register to be known as the “Central Register of Beneficial Ownership of Trusts”. All relevant trusts will have six months to register on the central register and to upload their beneficial ownership information. Any designated person becoming aware that the central register contains incorrect or incomplete information is obliged to file a notice of discrepancy with the Registrar.

Unrestricted access to the central register is available to certain high-ranking members of An Garda Síochána, FIU, Revenue and the Criminal Assets Bureau. Certain other persons also have limited access if they are engaged in the prevention, detection or investigation of possible money laundering or terrorist financing and this includes staff from a supervisory authority including ACCA. Access to basic information on the register is available to a designated person who is conducting customer due diligence on that trust prior to undertaking work for the trust.

The Regulations amend Section 35 of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2010 by making it a requirement that prior to the establishment of a business relationship “….a designated person shall ascertain that information concerning the beneficial ownership of the customer is entered in the relevant trust’s beneficial ownership register or in the Central Register of Beneficial Ownership of trusts, as the case may be”.

The fines for noncompliance are substantial. The legislation revokes the European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2019 (S.I. No.16 of 2019).

New Money Laundering legislation commenced

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 was commenced on 23^rd and 24^th April. In summary, as of that date engagement letters need to refer to the 2010 to 2021 Acts; there needs to be enhanced supervision of persons from high risk countries and an extension of the period of enhanced supervision of PEPs. There are also changes to the regulations of trusts and for prepaid gift cards.

Corporate Sustainable Reporting

On 21 April the EU published proposals to make substantial changes to the reporting of sustainability by very large companies. The Non-Financial Reporting Directive will be updated with a suite of Directives and Regulations which will require the Irish state to:

• amend company law to add accounting disclosures for CSR (Corporate Sustainable Reporting) for large companies;
• allow SMEs also make CSR reporting with reduced rules;
• amend company law for audit requirements to allow for the audit/assurance of CSR reports;
• increase the scope of supervision by IAASA to allow them to supervise the above.

The full suite of measures are set out in the Corporate Sustainable Reporting Directive (previously called the Non-financial reporting Directive), the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation. Together they will

• extend the scope of who needs to make sustainable reports;
• require assurance on the reporting by auditors;
• more specific detail requirements as to what exactly is disclosed;
• specify where the information is disclosed and that it is machine readable.

Special Covid-19 AGM rules extended

The government has extended the interim period of Companies (Miscellaneous Provisions) (Covid-19) Act 2020 until 31st December 2021. This means AGMs for companies and Industrial and Provident Societies can continue to be virtual up to that date. The Regulation also continues the limits for putting a company into a Creditors Liquidation at €50,000 and Examinership periods remain at 150 days. The Companies (Small Company Administrative Rescue Process and Miscellaneous Provisions) Bill 2021 contains a provision to make permanent provision for virtual meetings.