Financial Crime World

Ireland Tightens Screws on Money Laundering with Tougher Banking Regulations

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In an effort to combat money laundering and terrorist financing, Ireland has implemented stricter regulations for banks and other financial institutions. The country is also required to follow recommendations from the Financial Action Task Force (FATF), an international organization dedicated to preventing these crimes.

New Laws Crack Down on Money Laundering

According to new laws, it is illegal to hide or disguise the origin of criminal proceeds, known as money laundering. Penalties for those found guilty can include up to 14 years in prison and unlimited fines.

  • The regulations also apply to a wide range of individuals and businesses, including:
    • Auditors
    • Lawyers
    • Accountants
    • Property service providers
    • Casinos
    • Credit institutions
    • Financial institutions
    • Others

Designated Persons Required to Comply

To comply with the regulations, designated persons must:

  • Carry out risk assessments
  • Apply customer due diligence
  • Report suspicious transactions to the authorities
  • Have specific procedures in place to prevent money laundering and terrorist financing

Individuals Opening Bank Accounts Must Provide Proof of Identity

The new laws also require individuals opening bank accounts to provide proof of identity and answer questions about:

  • The origin of their funds
  • The nature of their business

This is aimed at making it more difficult for businesses to be used by criminals for illegal activities.

Competent Authorities Responsible for Monitoring Compliance

In Ireland, a number of competent authorities are responsible for monitoring designated persons and ensuring compliance with the regulations. These authorities include:

  • The Central Bank of Ireland
  • The Law Society of Ireland
  • Others

Strengthening Ireland’s Anti-Money Laundering Regime

The new regulations are aimed at strengthening Ireland’s anti-money laundering regime and bringing it in line with international standards. With these measures in place, the country is better equipped to:

  • Prevent money laundering and terrorist financing
  • Detect illegal activities
  • Protect its financial system from illegal activities