The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 was enacted into Irish law in July 2010 to update Irish anti-money laundering and terrorist financing legislation and bring it in line with the requirements of the EU Third AML Directive.
The new legislation requires Firms and persons subject to its provisions (referred to as “designated persons”) to move to a risk-based approach in identifying clients or customers.
What Is A “Designated Person”?
Section 25 of the Act defines the term ‘‘designated person’’ as any person working in Ireland in any of the following capacities:
- A credit or a financial institution unless specifically excepted;
- An auditor, external accountant or tax adviser;
- A relevant independent legal professional;
- A trust or company service provider;
- A property service provider;
- A casino;
- A person who directs a private members club at which gambling activities are carried out;
- A person trading in goods in respect of transactions involving the receipt of cash of at least €15,000; or
- Any other person of a prescribed class.
What Is A “Trust or Company Service Provider”
The legislation defines a Trust or Company Service Provider (TCSP) as a person whose business it is to provide any of the following services:
- Forming companies or other bodies corporate;
- Acting as a director or secretary of a company under an arrangement with a person other than the company;
- Arranging for another person to act as a director or secretary of a company;
- Acting, or arranging for a person to act, as a partner of a partnership;
- Providing a registered office, business address, correspondence or administrative address or other related services for a body corporate or partnership;
- Acting, or arranging for another person to act, as a trustee of a trust; or
- Acting, or arranging for another person to act, as a nominee shareholder for a person other than a company whose securities are listed on a regulated market.
Key Features Of The Legislation
The Department of Justice and Equality have set up an Anti-Money Laundering Compliance Unit (AMLCU) who have provided the following information in relation to various elements of the new legislation on their website:
- Designated persons are obliged to move to a risk-based approach in identifying Clients, otherwise referred to as Customer Due Diligence (CDD).
- CDD should be obtained before establishing a business relationship with new customers or carrying out transactions amounting to >€15,000.
- The business relationship requires ongoing monitoring for suspicions of money laundering and terrorist financing.
- CDD is categorised into enhanced and simplified customer due diligence procedures which should be applied to specified customer types.
- The legislation provides that designated persons can rely on third parties / other designated persons to meet the CDD requirements.
- The designated person remains responsible for any failure by the third party to apply the identification requirements.
- Knowledge or suspicions of money laundering or terrorist financing should be reported the Gardaí and Revenue Commissioners.
- All employees of designated bodies are to receive relevant ongoing training.
Supervision and Monitoring
Supervision and monitoring of designated bodies is conducted by the AMLCU.
Monitoring involves compliance inspections of designated persons to ensure that they are meeting their requirements under the Act. These inspections are undertaken by authorised officers appointed by the Minister.