Financial Crime World

Money Laundering Laws in Ireland: What You Need to Know

Ireland has a robust system in place to combat money laundering and terrorist financing. The country’s Anti-Money Laundering (AML) legislation requires designated persons, including financial institutions, accountants, lawyers, and property service providers, to take measures to prevent their businesses from being used for illicit activities.

What is Money Laundering?

Money laundering is defined as the processing of criminal proceeds to disguise their illegal origin. This includes:

  • Hiding the true nature, source, location, movement, or ownership of property
  • Obtaining, handling, keeping, or using it
  • Transferring or converting it
  • Moving it in or out of the country

Responsibilities of Designated Persons

Designated persons must take steps to prevent their businesses being used for money laundering or terrorist financing. This includes:

  • Conducting risk assessments
  • Applying customer due diligence (such as identifying customers and beneficial owners)
  • Reporting suspicious transactions to An Garda Síochána (the Financial Intelligence Unit) and the Revenue Commissioners

Competent Authorities

The 2010 Act establishes a number of competent authorities who monitor designated persons and ensure compliance with the requirements of the Act. These include:

  • The Central Bank of Ireland
  • The Law Society of Ireland
  • The Property Services Regulatory Authority
  • The Anti-Money Laundering Compliance Unit

Customer Due Diligence

Customers may be asked to provide proof of their identity when opening a bank account or engaging in other financial transactions. This is designed to make it more difficult for businesses to be used by individuals seeking to launder money or finance terrorist activities.

Penalties for Non-Compliance

Penalties for non-compliance with Ireland’s AML legislation are severe, with a maximum penalty of 14 years imprisonment and an unlimited fine.

For more information on Ireland’s anti-money laundering laws and how they affect designated persons and customers, see the relevant government website.