Financial Crime World

IRELAND’S FIGHT AGAINST MONEY LAUNDERING AND TERRORIST FINANCING

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010: A Key Component of Ireland’s Anti-Money Laundering and Counter-Terrorism Financing Regime

Overview

Ireland’s financial sector is subject to a robust anti-money laundering (AML) and counter-terrorism financing (CFT) regime, designed to prevent the misuse of its financial system for illegal activities. At the heart of this regime is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by subsequent legislation.

The CJA 2010: Transposing EU Directives into Irish Law

The CJA 2010 transposes key EU directives into Irish law, reflecting recommendations from the Financial Action Task Force (FATF), a global organization focused on combating money laundering and terrorist financing. The Central Bank of Ireland is the competent authority responsible for monitoring and supervising financial institutions’ compliance with AML/CFT obligations.

Designated Persons and Obligations

The CJA 2010 applies to “designated persons,” including credit and financial institutions, as well as individuals and entities involved in specific activities. These designated persons must implement robust customer due diligence (CDD) procedures, conduct risk assessments, identify beneficial owners, and maintain accurate records.

Key Features of the CJA 2010

  • Definitions of money laundering offenses and terrorist financing
  • Obligations for designated persons to apply CDD requirements and complete risk assessments
  • Requirements for identifying beneficial owners, politically exposed persons (PEPs), and reporting suspicious transactions
  • Provisions for monitoring and supervision by the Central Bank

Additional Legislation

Recent years have seen additional legislation introduced to strengthen Ireland’s AML/CFT regime, including:

  • The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019, which requires companies to maintain accurate records on beneficial ownership
  • The European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2019, which obliges trustees to identify beneficiaries and maintain a beneficial ownership register
  • The European Union (Information Accompanying Transfers of Funds) Regulations 2017, which amends the previous regime for reporting information accompanying transfers of funds

Conclusion

Ireland’s AML/CFT regime is designed to be robust and effective in preventing the misuse of its financial system. As part of its ongoing efforts to combat money laundering and terrorist financing, Ireland continues to implement EU directives and strengthen its regulatory framework.