Cross-Border Money Laundering Risks in Ireland on the Rise

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Ireland’s growing reputation as a major international financial center has brought with it significant and increasing threats from foreign criminal proceeds. A recent report highlights the substantial risks posed by illicit funds generated by crimes such as corruption and tax evasion, challenging authorities seeking to combat money laundering and terrorist financing.

Threats to Ireland’s Financial Sector

Identified High-Risk Sectors

• Retail and international banks: medium to high-risk sectors for money laundering
• Trust and company service providers: medium to high-risk sectors for money laundering
• Lawyers and accountants: identified as medium to high-risk sectors for money laundering
• Virtual asset service providers: emerging risks

Exacerbating Factors

Recent Developments

• Brexit: has exacerbated cross-border money laundering risks
• COVID-19 pandemic: has heightened concerns about the impact on Ireland’s financial sector

Addressing Cross-Border Money Laundering Risks

Enhancing Understanding and Policy Responses

• Conduct a thematic risk assessment by the Anti-Money Laundering Steering Committee to enhance understanding of transnational illicit financial flows
• Introduce data analytics tools, including machine learning, to leverage big data on cross-border payments for efficient detection of emerging risks

Improving Public Awareness and Policy Priorities

• Publish the results of a thematic risk assessment to improve public awareness of transnational money laundering threats
• Inform anti-money laundering and combating terrorism policy priorities going forward