Financial Crime World

IRELAND’S TOUGH STANCE ON MONEY LAUNDERING: KEY LEGISLATION EXPLAINED

Ireland has taken a significant step in the fight against money laundering with the introduction of The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. This legislation has strengthened Ireland’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework.

Key Legislation

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

  • As amended by Part 2 of the Criminal Justice Act 2013 and by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018, this legislation brings Irish law in line with European Union directives on AML/CFT.
  • It also reflects recommendations from the Financial Action Task Force (FATF), a specialist international organisation that focuses on combating money laundering and terrorist financing.

Regulatory Framework

The Central Bank of Ireland

  • The Central Bank of Ireland is responsible for monitoring and supervising financial and credit institutions’ compliance with their AML/CFT obligations.
  • The bank has the authority to take necessary measures to ensure that these entities adhere to the law.

Designated Persons

  • The legislation applies to a range of “designated persons,” including banks, credit unions, and other financial institutions.
  • It sets out customer due diligence requirements, risk-based approaches to AML/CFT, and reporting, internal policies, procedures, training, and record-keeping obligations for designated persons.

Additional Legislation

The Criminal Justice (Terrorist Offences) Act 2005

  • This legislation gives effect to the United Nations Convention for the Suppression of the Financing of Terrorism.
  • It creates an offence of financing terrorism and allows An Garda Síochána to freeze and confiscate funds used or allocated for terrorist purposes.

Statutory Instruments

  • The European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 require companies and other legal entities to maintain a register of beneficial owners.
  • The European Union (Information Accompanying Transfers of Funds) Regulations 2017 supplement the EU’s Funds Transfer Regulation.

Ireland’s Commitment

These measures demonstrate Ireland’s commitment to combating money laundering and terrorist financing. The country is taking a proactive approach to implementing international standards and best practices in AML/CFT, ensuring that its financial system remains secure and trustworthy.