Financial Crime World

Central Bank of Ireland Cracks Down on Financial Crime with Tough Legislation

The Central Bank of Ireland (CBI) has strengthened its position against financial crimes such as money laundering and terrorist financing through the enactment of strict legislation. This includes the implementation of The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (CJA 2010), which constitutes the fundamental framework for combating these illicit activities in Ireland.

The Role of CJA 2010 in Combating Financial Crimes

  • The CJA 2010 is an update of Ireland’s compliance with the European Union’s (EU) Third and Fourth Anti-Money Laundering Directives
  • Adheres to recommendations made by the Financial Action Task Force (FATF)
  • Plays a crucial role in safeguarding Ireland’s financial sectors

CBI’s Responsibilities under CJA 2010

As the primary competent authority, the Central Bank of Ireland (CBI) is responsible for the monitoring and supervision of both financial and credit institutions’ compliance with:

  • Anti-Money Laundering (AML) obligations
  • Countering the Financing of Terrorism (CFT) obligations outlined in the CJA 2010

Key Features of CJA 2010

  • Broadly defining money laundering offenses

    • Includes actions intended to conceal or disguise the true origin, disposition, or movement of criminal proceeds
    • Money or other property is considered criminally derived if it represents the proceeds of criminal activity

  • Designating Persons for AML/CFT Obligations

    • Financial entities and their activities
    • Beneficial Owners

  • Customer Due Diligence requirements

    • Verifying the identity of customers
    • Screening for politically exposed persons (PEPs) and other high-risk individuals

  • Risk-based approach implementation

    • Regular assessment and risk identification
    • Proportionality in measures taken to mitigate risks

  • Identifying Beneficial Owners and PEPs

    • Beneficial owners are natural persons who ultimately own or control a legal entity through direct or indirect ownership or control
    • PEPs are individuals in positions of public power or have significant political influence

  • Reporting, training, record-keeping, and internal policies and procedures

    • Reporting of suspicious transactions
    • Ongoing training and awareness of AML/CFT risks
    • Regular review and updating of policies and procedures

  • Monitoring and supervision of designated persons

    • Ensuring adherence to AML/CFT regulatory requirements
    • Conducting examinations, inspections, and assessments

Additional Regulations and Acts

  • The Criminal Justice (Terrorist Offences) Act 2005

    • Implements the United Nations Convention for the Suppression of the Financing of Terrorism

  • S.I. No. 110 of 2019

    • Companies must maintain accurate, up-to-date information on their beneficial owners

  • S.I. No. 16 of 2019

    • Trustees must identify and register beneficiaries under trusts

  • S.I. No. 608 of 2017

    • Provides standards for information accompanying transfers of funds

EU Regulatory Frameworks

  • Fourth and Fifth Money Laundering Directives

    • Set out minimum standards for EU countries to prevent money laundering and terrorist financing

  • Regulation (EU) 2015/847

    • Obliges financial entities to conduct due diligence on their clients before establishing business relations