Financial Crime World

Financial Inclusion and Crime: Ireland Makes Progress in Fight Against Money Laundering and Terrorist Financing

Ireland has taken significant steps to strengthen its framework for combating money laundering and terrorist financing, according to the Financial Action Task Force (FATF). The country has addressed weaknesses identified in its 2017 assessment, earning improved ratings across several key recommendations.

Enhanced Follow-up Process

Since its initial evaluation, Ireland has undergone an enhanced follow-up process to ensure compliance with international standards. The FATF has re-rated the country on a range of recommendations, reflecting its progress towards financial inclusion and crime prevention.

Areas of Improvement

  • National cooperation and coordination: Ireland has moved from largely compliant to fully compliant.
  • Politically exposed persons: Ireland is now fully compliant.
  • Wire transfers: Ireland has improved its ratings in this area.
  • Internal controls: Ireland’s internal controls are now considered fully compliant.
  • Transparency and beneficial ownership of legal arrangements: Ireland has also improved its ratings in this area.

Regulatory Improvements

  • Regulation and supervision of financial institutions: Ireland’s ratings have improved in this area.
  • Financial intelligence unit: The country’s financial intelligence unit is now considered fully compliant.
  • Powers of law enforcement: Ireland’s powers of law enforcement are now more effective.
  • Guidance and feedback: The country’s guidance and feedback mechanisms have been strengthened.

Challenges Remain

While Ireland has made significant progress, it still faces challenges, particularly in regards to targeted financial sanctions related to proliferation. However, the country remains compliant on 17 out of 40 FATF recommendations, largely compliant on 16, and partially compliant on seven.

Impact on Financial Inclusion

Ireland’s enhanced framework is expected to improve financial inclusion and reduce the risk of money laundering and terrorist financing in the country. As it moves from enhanced to regular follow-up, Ireland will continue to report back to the FATF on its progress towards strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Conclusion

Ireland’s efforts demonstrate a commitment to fighting financial crime and promoting financial inclusion. The country’s progress is a positive step forward in the global fight against money laundering and terrorist financing.