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Tougher Banking Regulations Introduced in Ireland to Combat Terrorism Funding and Money Laundering

Strengthening Efforts Against Terrorism Financing and Money Laundering

Dublin, Ireland - In an effort to combat terrorism financing and money laundering, Ireland has introduced a raft of new banking regulations aimed at cracking down on illicit activities.

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

The primary piece of legislation in Ireland that tackles anti-money laundering (AML) and countering the financing of terrorism (CFT) is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by Part 2 of the Criminal Justice Act 2013 and the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018.

Key Features of the Regulations

The regulations transpose European Union directives on AML/CFT into domestic Irish law and reflect international standards set by the Financial Action Task Force (FATF). They require financial institutions to implement robust measures to prevent money laundering and terrorist financing. The key features of the regulations include:

  • Defining Money Laundering Offenses: Clearly defining what constitutes a money laundering offense
  • Identifying Beneficial Owners: Identifying the beneficial owners behind customers who are not natural persons
  • Customer Due Diligence and Risk Assessments: Requiring customer due diligence and risk assessments to prevent illicit activities
  • Reporting Suspicious Transactions and Maintaining Records: Obliging designated persons to report suspicious transactions and maintain records

Applicability of the Regulations

The regulations apply to designated persons, including:

  • Banks
  • Credit unions
  • Other financial institutions
  • Non-financial businesses and professions, such as:
    • Lawyers
    • Accountants

Central Bank Monitoring and Supervision

The Central Bank of Ireland is responsible for monitoring and supervising financial institutions’ compliance with AML/CFT obligations. The bank has the power to take necessary measures to ensure that institutions comply with the provisions of the act.

Additional Legislation

Other relevant legislation in Ireland includes:

  • Criminal Justice (Terrorist Offences) Act 2005: Gave effect to the United Nations Convention for the Suppression of the Financing of Terrorism
  • Statutory Instruments: Several statutory instruments have been introduced to implement EU regulations on AML/CFT, including:
    • European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019
    • European Union (Information Accompanying Transfers of Funds) Regulations 2017

Conclusion

The new regulations are aimed at strengthening Ireland’s efforts against terrorism financing and money laundering, and will help to ensure that the country remains a safe and secure place for businesses and individuals to operate.