Financial Crimes on the Rise in Ireland: Understanding the Types

As financial crimes continue to plague the world, Ireland has taken significant steps to combat money laundering and terrorist financing through its Criminal Justice (Money Laundering and Terrorist Financing) Act of 2010.

Key Features of Irish Anti-Money Laundering Legislation

• The Act defines the offence of money laundering, establishes designated persons subject to anti-money laundering obligations, and sets out customer due diligence requirements.
• It obliges designated persons to embed a risk-based approach to anti-money laundering and countering the financing of terrorism.
• The legislation identifies beneficial owners behind customers who are not natural persons and requires designated persons to take measures to understand ownership and control structures.
  • Politically exposed persons (PEPs) must be identified, along with their families or close associates.
• Designated persons must also:
  • Report suspicious transactions
  • Maintain internal policies and procedures
  • Provide training for employees
  • Keep records of transactions

Role of the Central Bank

The Central Bank is responsible for monitoring and supervising financial institutions’ compliance with anti-money laundering obligations. It can take measures reasonably necessary to ensure designated persons comply with the Act’s provisions.

Other Relevant Legislation in Ireland

• The Criminal Justice (Terrorist Offences) Act 2005 created a new offence of financing terrorism and enabled An Garda Síochána to freeze and confiscate funds used or allocated for use in connection with terrorist activities.

Recent Regulations

• The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 require companies and other legal entities incorporated in Ireland to maintain an internally maintained register of beneficial owners.
• The European Union (Anti-Money Launderling: Beneficial Ownership of Trusts) Regulations 2019 introduced similar requirements for trustees.
• The European Union (Information Accompanying Transfers of Funds) Regulations 2017 amended the previous regime, introducing new requirements for financial institutions and individuals transferring funds.

European Legislation

Ireland is bound by various European directives, including:

• The Third Money Laundering Directive
• The Fourth Money Laundering Directive
• The Fifth Money Laundering Directive

The country has also implemented Regulation (EU) 2015/847 on information accompanying transfers of funds.

Conclusion

Ireland’s anti-money laundering and counter-terrorism financing legislation provides a robust framework for combating financial crimes. Designated persons must adhere to strict guidelines, while the Central Bank plays a crucial role in monitoring compliance. As financial crimes continue to evolve, it is essential that authorities remain vigilant and adapt their strategies to stay ahead of criminal activity.