Financial Crime World

Ireland Registers First Virtual Asset Service Providers

In a significant milestone for the country’s fintech and blockchain industry, Ireland’s Central Bank has registered its first virtual asset service providers (VASPs) under Section 26 of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2022. This development marks a major step towards regulating the digital assets market in Ireland.

Key Takeaways

  • The registration process ensures that VASPs operating in Ireland comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
  • The move is part of Ireland’s broader push to establish itself as a hub for fintech and blockchain innovation.
  • The Central Bank has also announced plans to introduce new guidelines for virtual assets, including stricter rules on custody and safekeeping.

Diversity and Inclusion

Ireland’s financial regulator has made significant strides in promoting diversity and inclusion within the industry. Key highlights include:

Diversity Statistics

  • The percentage of female applicants for senior positions in regulated firms increased to 32% in 2023, up from 22% in 2017.
  • The Central Bank is working closely with industry stakeholders to promote gender balance and increase representation of women in management and board-level positions.

New Mortgage Rules

The Central Bank has announced plans to introduce new mortgage rules aimed at protecting consumers in a changing economic landscape. Key highlights include:

New Consumer Protection Code

  • The revised code will come into effect in 2024, consolidating existing rules and providing greater protections for borrowers.
  • The move is designed to support borrowers and promote responsible lending practices, particularly in light of rising interest rates and economic uncertainty.

Credit Union Services

The Irish government has signed into law the Credit Union (Amendment) Act 2023, aimed at expanding credit union services in the country. Key highlights include:

Expanded Services

  • Credit unions will now be able to offer a wider range of services, including loans and savings products.
  • The move is designed to provide greater financial inclusion for households and small businesses.

Client Asset Requirements

The Central Bank has introduced new client asset requirements (CAR) aimed at protecting investors in the event of a firm’s insolvency or withdrawal from the market. Key highlights include:

New Rules

  • The CAR will apply to banks carrying out MiFID investment business.
  • Firms will be required to maintain accurate records and provide regular updates to clients.

Fitness and Probity

The Central Bank has emphasized its commitment to ensuring the fitness and probity of individuals carrying out key and customer-facing positions in banks. Key highlights include:

Fitness and Probity Regime

  • The regime is designed to ensure that individuals are competent, capable, honest, ethical, and financially sound.
  • Regulators are working closely with industry stakeholders to promote a culture of integrity and transparency within the financial sector.

Overall, these developments reflect Ireland’s commitment to promoting a robust and inclusive financial system, while also supporting innovation and competition in the digital assets market.