Financial Crime World

Financial Crime Statistics Globally in Ireland Reveal Growing Threats from Foreign Criminal Proceeds

Ireland’s position as a global financial hub has brought with it a growing threat from foreign criminal proceeds. Despite efforts to combat domestic money laundering (ML) threats, the country is facing an increasing risk of transnational ML/TF related risks due to its exposure as a hub for international transactions.

Medium to High-Risk Sectors

Recent statistics have identified retail and international banks, trust and company service providers, lawyers, and accountants in Ireland as medium to high-risk sectors for money laundering. Virtual asset service providers are emerging as new threats in this area.

Understanding Transnational Illicit Financial Flows

The Central Bank of Ireland has demonstrated a strong understanding of domestic ML/TF risks. However, experts agree that there is a need for increased focus on the risks related to transnational illicit financial flows. This includes:

  • Brexit: The relocation of international banks to Dublin has contributed to an increased money laundering risk environment in Ireland.
  • Pandemic: The COVID-19 pandemic has also had an impact on the country’s ML/TF landscape.
  • Increased international transactions: As a hub for international transactions, Ireland is exposed to new risks from foreign criminal proceeds.

Combatting Money Laundering Risks

To combat these threats, authorities are calling for a thematic risk assessment undertaken by the Anti-Money Laundering Steering Committee (AMLSC) to enhance understanding of international ML/TF risks. This assessment should be undertaken using data analytics tools, including machine learning to leverage big data on cross-border payments.

Benefits of Thematic Risk Assessment

The results of this assessment would:

  • Improve public understanding of transnational ML/TF risks
  • Inform anti-money laundering and combating the financing of terrorism (AML/CFT) policy priorities going forward
  • Enhance cooperation between authorities, banks, and other financial institutions

Conclusion

Ireland’s financial crime statistics globally reveal a growing need for increased vigilance and cooperation to combat the threat of foreign criminal proceeds. As the country continues to grow as an international financial center, it is crucial that effective measures are put in place to mitigate these risks and protect the integrity of the financial system.

By implementing a thematic risk assessment and utilizing data analytics tools, Ireland can better understand and address the growing threats from foreign criminal proceeds, ensuring the stability and security of its financial system.