The Irish legislation in this area is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended by Part 2 of the Criminal Justice Act 2013. The 2010 Act consolidated Ireland's existing Anti-Money Laundering and Terrorist financing laws, which until then had to be co-initiated mainly in the Criminal Justice Act 1994.
The purpose of this legislation is to:
Transpose the third EU Money Laundering Directive (2005/60/EC) and the associated implementing Directive (2006/70/EC) into national law.
Reflect recommendations made by the Financial Action Task Force (FATF) – a specialist international anti money laundering and counter terrorist financing body established by the G7.
Key features of the legislation
The legislation sets out the legal provisions to ensure technical compliance with and effective implementation of international standards by
Defining broadly the offence of money laundering
Defining ‘designated persons’ and ‘beneficial owners’
Setting out the requirements for Customer Due Diligence (CDD), Reporting of Suspicious Transactions, Internal Policies and Procedures, Training and Record Keeping pertaining to designated persons.
Providing for the monitoring of designated persons.
Providing for the issue of Authorisations to Trust or Company Service Providers (TCSPs).
Providing for an appeals process in respect of the Authorisation of TCSPs.
Scope of the legislation
The legislation imposes obligations in terms of money laundering and terrorist financing on a wide range of legal persons (referred to in the legislation as ‘designated persons’) including:
Credit and Financial Institutions
A Property Service Provider
Independent Legal Professionals
Auditors, external Accountants or Tax Advisers
Trust or Company Service Providers
Dealers in High Value Goods
Private Members' Clubs
These designated persons are required to identify customers / beneficial owners, maintain records, report suspicious transactions to An Garda Síochána and to the Revenue Commissioners and to put in place procedures to provide for the prevention of money laundering and terrorist financing.
The Minister for Justice and Equality signed an Order on 16 August 2016 prescribing the Property Services Regulatory Authority (PSRA) as the Competent Authority for the Real Estate sector for the purposes of money laundering and terrorist financing compliance monitoring in accordance with the provisions of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended by the Criminal Justice Act 2013.
For categories of ‘designated persons’ for which there is no supervisory or competent authority, the legislation provides that they will be monitored for the purposes of compliance with the legislation by the State Competent Authority i.e. the Anti-Money Laundering Compliance Unit acting on behalf of the Minister.
The Criminal Justice (Money Laundering and Terrorist Financing) Bill 2018, which will give effect to provisions of the Fourth EU Anti-Money Laundering Directive, is currently progressing through the houses of the Oireachtas. Its progress can be viewed here.