Financial Crime World

Combating Terrorism Financing Guidelines Come into Force in Ireland

A significant piece of legislation aimed at combating terrorism financing and money laundering has come into effect in Ireland. The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by subsequent legislation, is the primary law on Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT) in Ireland.

Background

The act transposes European Union directives into domestic Irish law and reflects recommendations made by the Financial Action Task Force (FATF), an international organization that focuses on combating money laundering and terrorist financing. The Central Bank of Ireland is responsible for monitoring and supervising financial institutions’ compliance with AML/CFT obligations.

Key Features of the Act

  • Definitions: The act defines money laundering and designated persons, including those subject to AML/CFT obligations.
  • Customer Due Diligence Requirements: Designated persons must conduct customer due diligence to identify beneficial owners behind customers who are not natural persons.
  • Risk-Based Approach: Designated persons must embed a risk-based approach to AML/CFT, complete business-level risk assessments, and identify Politically Exposed Persons (PEPs).
  • Applicability: The act applies to a range of individuals and entities, including designated persons under Section 25 and activities listed in Schedule 2.

Other Relevant Legislation

  • Criminal Justice (Terrorist Offences) Act 2005: This act criminalizes terrorist offences and provides for the prosecution of such crimes.
  • EU Regulations: Various EU regulations are aimed at preventing money laundering and terrorist financing, ensuring Ireland remains in compliance with international standards.

Implementation

The implementation of these guidelines is seen as a crucial step in strengthening Ireland’s efforts to combat terrorism financing and money laundering. It ensures the country remains in compliance with international standards and demonstrates its commitment to combating these serious crimes.