Financial Crime World

Ireland’s Banking Regulations Crack Down on Money Laundering and Terrorist Financing

Ireland has taken a significant step to combat money laundering and terrorist financing by implementing a range of regulations aimed at curbing these illicit activities. At the heart of these efforts is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, which transposes European Union directives into domestic Irish law.

The Role of the Central Bank

The Central Bank of Ireland plays a crucial role in monitoring and supervising financial institutions’ compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations. The bank is empowered to take measures necessary to ensure that credit and financial institutions comply with the provisions of the Act.

Who Does the Act Apply To?

The Act applies to designated persons, including:

  • Credit and financial institutions
  • Certain activities such as:
    • Currency exchange
    • Money transmission services

Schedule 2 lists specific activities subject to AML/CFT obligations, regardless of the regulatory status of the entity.

Key Features of the Act

The Act sets out a range of legal provisions aimed at ensuring effective implementation of international standards on AML and CFT. Key features include:

  • Defining money laundering and terrorist financing offences
  • Identifying designated persons and beneficial owners subject to AML/CFT obligations
  • Requiring customer due diligence and risk-based approach to AML/CFT
  • Establishing requirements for identifying politically exposed persons (PEPs)
  • Obliging reporting, internal policies, training, and record-keeping requirements

Other Relevant Legislation

In addition to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, other relevant legislation includes:

  • The Criminal Justice (Terrorist Offences) Act 2005
  • S.I. No. 110 of 2019 – European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019
  • S.I. No. 16 of 2019 – European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2019
  • S.I. No. 608 of 2017 – European Union (Information Accompanying Transfers of Funds) Regulations 2017

These regulations aim to strengthen Ireland’s anti-money laundering and counter-terrorism financing framework, in line with international standards set by the Financial Action Task Force (FATF).