THE LATEST legislation aimed at combating money-laundering has come into effect following its signature by the President.
The Bill was published last July and progressed quickly through the Oireachtas.
The Criminal Justice (Money Laundering and Terrorist Financing) Bill 2009 transposes the third EU money laundering directive into Irish law. It also gives effect to certain recommendations of the international anti-money laundering and anti-terrorist financing body, the Financial Action Task Force, which was established by the G7 countries.
The Act consolidates Ireland’s existing anti-money laundering and terrorist financing laws, which up to now have been contained mainly in the Criminal Justice Act 1994. It also increases the obligations on a wide range of individuals and organisations in relation to disclosure concerning suspected money-laundering and terrorist financing.
Minister for Justice Dermot Ahern said it would update and strengthen the State’s anti-money laundering and terrorist financing regime.
“This new law increases the obligations on credit and financial institutions and on lawyers, accountants, estate agents and others with regard to money-laundering and terrorist financing,” Mr Ahern said. “Similar legislation will apply throughout the European Union.
“The Act contains requirements on the part of the designated bodies covered by the legislation to identify customers and beneficial owners, to report suspicious transactions to the gardaí and to the Revenue Commissioners and to have specific procedures in place to provide to the fullest extent possible for the prevention of money-laundering and terrorist financing.
“While Ireland already has effective anti-money-laundering and anti-terrorist-financing legislation in place, we need laws as extensive and as comprehensive as the one which has now been enacted to ensure full compliance with all of the requirements of the EU directive and with the recommendations of the FATF.”
Mr Ahern added that the legislation was important for Ireland’s reputation as an international financial services centre.
The Act increases the obligations on the “designated persons” to carry out due diligence measures at the outset of a business relationship.
It also brings private member gaming clubs under the ambit of the legislation. They will be required to comply with the legislation and will be monitored by the department to ensure compliance.