The RBO have updated their Form DN2 for filing discrepancies and the newest version can be found in the ShareFile Folder which you would have been given access to when you set up RBO account.

What is a Discrepancy/Discrepancy notice?

A discrepancy notice is a formal notification to the RBO of a discrepancy found between the information held on the RBO via the RBO report and other information available to the designated person or competent authority/relevant person.

Who can file discrepancies?

A discrepancy has a specific meaning depending on who is reporting the discrepancy.

Discrepancies can only be reported by a ‘designated person’ or a ‘competent authority/relevant person’.

Under Regulation 20(3)(b) where a ‘designated person’ is carrying out due diligence on an entity, or otherwise, forms the opinion that there is discrepancy between information on the RBO and the information the entity must hold in its internal register then in a timely manner the designated person shall deliver notice to the Registrar using a Form DN2.

Under Regulation 26(1) where a ‘relevant person’ forms the opinion that there is a discrepancy between information on the RBO and the beneficial ownership information available to the ‘relevant person’, the relevant person in a timely manner should issue notice to the Registrar on the Form DN1.

The RBO will not disclose the identity of the person/person(s) who reports a discrepancy.

What is a ‘relevant person’?

A ‘relevant person’ is a competent authority, the Garda Síochána, the Revenue Commissioners or the Criminal Assets Bureau.

‘Competent Authorities’ include;

• The Central Bank of Ireland for credit institutions, financial institutions or trust or company service providers,
• The designated accountancy bodies for auditors, external accountants or tax advisers,
• The Law Society of Ireland for solicitors,
• The Legal Services Regulatory Authority for barristers,
• The Property Services Regulatory Authority for property service providers, and
• The Minister for Justice for any other designated person (administered by the Anti-Money Laundering Compliance Unit.

What is a ‘designated person’?

Section 25(1) of the 2010 Act amended defines the term ‘‘designated person’’ as any person working in Ireland in any of the following capacities:

1. a credit institution,
2. a financial institution,
3. an auditor, external accountant or tax adviser,or any other person whose principal business or professional activity is to provide, directly or by means of other persons to which that other person is related, material aid, assistance or advice on tax matters
4. a relevant independent legal professional,
5. a trust or company service provider,
6. a property service provider including a property service provider acting as an intermediary in the letting of immovable property, but only in respect of transactions for which the monthly rent amounts to a total of at least €10,000,
7. a casino,
8. a person who effectively directs a private members’ club at which gambling activities are carried on, but only in respect of those gambling activities,
9. a virtual asset service provider,
10. a person trading or acting as an intermediary in the trade of works of art (including when carried out by an art gallery or an auction house) but only in respect of transactions of a total value of at least €10,000 (whether in one transaction or in a series of transactions that are or appear to be linked to each other),
11. a person storing, trading or acting as an intermediary in the trade of works of art when this is carried out in a free port but only in respect of transactions of a total value of at least €10,000 (whether in one transaction or as a series of transactions that are or appear to be linked to each other), or
12. any other person of a prescribed class.

For more detail on designated persons please see Section 25 of Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021.

Only a ‘designated person’ as defined in Section 25, 2010 Criminal Justice (Money Laundering & Terrorist Financing) Act, as amended, is entitled to report a discrepancy to the Registrar.

How to File a Discrepancy Notice as a Designated Person

A ‘designated person’ must appoint RBO Admin who is responsible for:

1. coordinating and authenticating reports of discrepancies and non-compliance to the Registrar on behalf of the above-named “designated person” as required by Regulation 20(3), SI 110/2019, and
2. liaising with the RBO on behalf of the above-named “designated person” on day-to-day operational matters.

RBO Admins can be appointed using a BEN3A1 Form which can be obtained by sending an e-mail to [email protected] 

It is likely this week you received an email from the RBO notifying you of this change.

Upon receipt of the completed BEN3A1, the RBO will provide the appointed RBO Admin with access to the DN2 Form.

What happens once I file a Discrepancy report?

For the Discrepancy report, DN1 and DN2, you will be notified of the outcome after the RBO has concluded its investigations.

If a ShareFile folder has not been set up for your organisation, the RBO can email you a copy of the DN2 or they can set you up with ShareFile access. Please email [email protected] to let us know your preference.

If you have further questions in relation to RBO please reach out to the OmniPro Corporate Consultants Team.

The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.