Financial Crime World

Ireland’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Best Practices: A Comprehensive Guide

Introduction

Ireland’s AML/CFT framework is built around key legislation, including the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended in 2013 and 2018. This legislation aligns with EU directives and FATF recommendations, covering a range of AML/CFT obligations enforced by the Central Bank of Ireland.

Key Legislation

The Criminal Justice Act 2010 applies to various entities, including those engaged in financial and credit activities, setting forth customer due diligence requirements, reporting obligations, and procedures for identifying beneficial ownership and Politically Exposed Persons (PEPs).

Additional Relevant Legislation

Other relevant legislation includes:

  • The Criminal Justice (Terrorist Offences) Act 2005
  • European Union regulations on beneficial ownership and funds transfers
  • Directives that form the EU’s AML framework

Industries Impacted by AML Regulations

Ireland’s AML regulations encompass a wide range of sectors, including:

  • Financial entities like banks, investment firms, and insurance companies
  • Non-financial businesses and professions such as:
    • Real estate agents
    • Accountants
    • Legal service providers

Compliance Requirements for Businesses

Businesses in Ireland are required to adhere to specific AML/CFT regulations, including:

Customer Due Diligence

  • Conduct thorough customer due diligence, including verifying the identity of customers and beneficial owners.

Reporting Suspicious Activity

  • File Suspicious Activity Reports (SARs) with the relevant authorities when suspecting money laundering or terrorist financing activities.

Record Keeping

  • Maintain detailed records of customer transactions and due diligence measures for a specified period.

AML Regulators in Ireland

The primary regulators overseeing AML/CFT activities in Ireland include:

  • Central Bank of Ireland: Regulates credit institutions, financial institutions, and trust or company service providers, ensuring their compliance with AML regulations.
  • Designated Accountancy Bodies: Responsible for monitoring auditors, external accountants, and tax advisers.
  • Legal Services Regulatory Authority: Regulates barristers in relation to AML matters.
  • Minister for Justice: Oversees compliance for other designated persons, administered by the Anti-Money Laundering Compliance Unit.

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Note: This article has been rewritten to provide information on Ireland’s AML/CFT regulations and requirements in a concise and easy-to-read format.