Financial Crime World

Ireland Strengthens Anti-Money Laundering and Countering the Financing of Terrorism Efforts with New Legislation

Dublin, Ireland - A Significant Step Forward in Combating Money Laundering and Terrorist Financing

The Irish government has taken a significant step forward in combating money laundering and terrorist financing with the passage of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. This landmark legislation aims to prevent the use of the financial system for illicit activities and bring Ireland in line with international standards set by the Financial Action Task Force (FATF).

Key Provisions of the CJA 2010

  • The Act transposes the European Union’s Third Anti-Money Laundering Directive, Implementing Directive, and Fourth Anti-Money Laundering Directive into domestic Irish law.
  • It reflects recommendations made by FATF, a specialist international organization focused on combating money laundering and terrorist financing.
  • The Central Bank of Ireland has been designated as the competent authority responsible for monitoring and supervising financial and credit institutions’ compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) obligations.

Designated Persons and Obligations

The CJA 2010 applies to a wide range of persons, including:

  • Financial institutions
  • Lawyers
  • Accountants
  • Real estate agents
  • Other professionals who provide services to customers

Designated persons are required to:

  • Conduct strict customer due diligence
  • Implement a risk-based approach to AML/CFT
  • Report suspicious transactions and activities
  • Identify beneficial owners behind customers who are not natural persons, as well as politically exposed persons (PEPs) and their families or close associates
  • Maintain training records and keep accurate records of all transactions

Additional Legislation

Other relevant legislation includes:

  • The Criminal Justice (Terrorist Offences) Act 2005, which created a new offense of financing terrorism and provided for the freezing and confiscation of funds used or allocated for use in connection with terrorist activities.
  • Recent regulations include:
    • European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019
    • European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2019
    • European Union (Information Accompanying Transfers of Funds) Regulations 2017

Enhanced Reputation and Commitment to Combating Money Laundering and Terrorist Financing

The Irish government’s efforts to strengthen AML/CFT measures demonstrate its commitment to combating money laundering and terrorist financing. The new legislation is expected to enhance Ireland’s reputation as a reliable and trustworthy financial center in Europe.