Ireland’s AML/CFT Framework: Room for Improvement in Convictions and Proceeds Confiscation, Says FATF
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The Financial Action Task Force (FATF) has recently conducted an assessment of Ireland’s regime for combating money laundering and terrorist financing. While the report found that Ireland’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework is sound and effective, it also identified areas for improvement to increase convictions and confiscate criminal proceeds.
Strengths and Areas for Improvement
Understanding Money Laundering and Terrorist Financing Risks
Ireland has a good understanding of the money laundering and terrorist financing risks it faces. However, the report noted that the country could refine its understanding of international money laundering risks given its position as an important regional and international financial centre.
Supervision and Cooperation
The Central Bank of Ireland and the Department of Justice and Equality have been commended for their risk-based approach to supervision, which has led to good cooperation with financial institutions and designated non-financial businesses and professions. Competent agencies in Ireland are able to access financial information on short notice to assist in their investigations.
Coordination, Cooperation, and Financial Intelligence
The report highlighted the strong points of Ireland’s AML/CFT framework, including coordination, cooperation, and the use of financial intelligence. Authorities have demonstrated a willingness to cooperate internationally on money laundering and terrorist financing issues.
Challenges and Recommendations
Convictions for Money Laundering Cases
Ireland has not yet achieved convictions after trial for money laundering cases. This is an area that requires improvement to ensure effective enforcement of AML/CFT regulations.
Confiscation of Criminal Proceeds
While Ireland has prioritized counter-terrorism efforts and has secured terrorism-related convictions, it could do more to actively pursue the prosecution of terrorist financing. The country also needs to improve its ability to confiscate criminal proceeds.
Next Steps
To further strengthen its AML/CFT framework, Ireland is expected to implement additional measures, including:
- Providing more resources for money laundering investigations
- Enhancing cooperation and coordination between competent agencies
- Improving the use of financial intelligence to combat money laundering and terrorist financing
While some of these measures are already underway, they will be crucial in helping Ireland tackle money laundering and terrorist financing effectively.