Financial Crime World

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Ireland Introduces Tougher Measures to Combat Money Laundering and Terrorist Financing

Strengthening International Standards

The Irish government has introduced a comprehensive package of measures aimed at combating money laundering and terrorist financing in the country. The new legislation, known as the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, brings Ireland into line with international standards and strengthens its ability to prevent these serious crimes.

Transposing EU Directives

The act transposes three European Union directives - the Third Anti-Money Laundering Directive, the Implementing Directive, and the Fourth Anti-Money Laundering Directive - into domestic Irish law. It also reflects recommendations made by the Financial Action Task Force (FATF), a specialist international organisation that focuses on combating money laundering and terrorist financing.

Key Provisions

Under the act, the Central Bank of Ireland is now the competent authority responsible for monitoring and supervising financial and credit institutions’ compliance with anti-money laundering and counter-terrorism financing obligations. The bank has been empowered to take measures necessary to ensure that these institutions comply with the law.

  • The legislation defines broadly the offence of money laundering
  • Sets out customer due diligence requirements
  • Obliges designated persons (such as banks and other financial institutions) to:
    • Identify beneficial owners and politically exposed persons (PEPs)
    • Implement a risk-based approach to anti-money laundering and counter-terrorism financing
    • Complete business-level risk assessments
    • Maintain records of their activities

Reporting Requirements and Supervision

The act sets out reporting requirements, internal policies and procedures, training, and record-keeping obligations for designated persons. It also provides for the monitoring and supervision of these entities by the Central Bank.

International Cooperation

Ireland is implementing several European Union regulations aimed at combating money laundering and terrorist financing, including:

  • The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019
  • The European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2019
  • The European Union (Information Accompanying Transfers of Funds) Regulations 2017

Response from the Government

The Irish government has welcomed the new legislation as an important step in its efforts to combat money laundering and terrorist financing. “This legislation is a significant step forward in our fight against these serious crimes,” said Minister for Justice Charlie Flanagan. “It will help us to better identify and disrupt criminal activity, and bring those responsible to justice.”

Effective Date and Compliance

The act comes into effect on [insert date], and designated persons are expected to begin implementing its requirements immediately. The Central Bank of Ireland is responsible for monitoring compliance with the legislation and enforcing penalties against institutions that fail to comply.

International Recognition

Ireland’s efforts to combat money laundering and terrorist financing have been praised by international organisations, including the FATF and the European Union. The country is widely regarded as a leader in this area, and its new legislation is expected to serve as a model for other countries seeking to strengthen their anti-money laundering and counter-terrorism financing regimes.