Ireland’s Anti-Money Laundering and Countering the Financing of Terrorism Legislation Under Scrutiny

Introduction

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by subsequent legislation, remains Ireland’s primary piece of anti-money laundering (AML) and countering the financing of terrorism (CFT) legislation.

Background

The act transposes European Union directives into domestic Irish law, reflecting recommendations from the Financial Action Task Force. It is designed to prevent money laundering and terrorist financing by setting out a framework for financial institutions and other designated persons to comply with.

Key Provisions

• The Central Bank of Ireland is responsible for monitoring and supervising financial and credit institutions’ compliance with AML/CFT obligations.
• The bank has the power to take measures necessary to ensure institutions comply with the act’s provisions.
• The legislation defines money laundering offenses and sets out:
  • Customer due diligence requirements
  • Risk-based approaches
  • Reporting obligations for designated persons
  • Identification of beneficial owners, politically exposed persons, and freezing or confiscation of funds used for terrorist financing

Relevant Irish Legislation

• Criminal Justice (Terrorist Offences) Act 2005
• European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019:
  • Requires companies to maintain a register of beneficial owners

Amendments and Updates

The CJA 2010 has been amended several times since its introduction, with the latest amendments coming into effect in 2018.

Conclusion

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 remains an important tool for Ireland in combating money laundering and terrorist financing. It is crucial that financial institutions and other designated persons continue to comply with its provisions to ensure the effectiveness of this legislation.