The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (“the Act”) commenced on 15 July 2010.
The Act transposes the Third Money Laundering Directive (2005/60/EC) and its Implementing Directive (2006/70/EC) into Irish Law, bringing Ireland into line with the most recent revision of the recommendations of the Financial Action Task Force and ensuring that Irish practice is in line with international standards.
The Act:
- Defines broadly the offence of money laundering
- Requires designated persons to identify non-domestic politically exposed persons (PEPs)
- Requires identification of beneficial ownership of legal entities, such as companies and trusts
- Requires designated persons to focus on the level of risk of money laundering and terrorist financing in meeting their obligations under the Act.
- Requires the Central Bank and Financial Services Authority of Ireland to effectively monitor credit and financial institutions (as defined in the Act) with regard to their obligations under the Act, and to take measures that are reasonably necessary to secure such compliance.
The Act applies to:
1. Credit and Financial Institutions (as defined in the Act) including:
- Credit Institutions
- Credit unions
- Electronic money institutions
- Retail credit firms
- Moneylenders
- Insurance undertakings and insurance intermediaries
- Investment business firms
- Collective investment schemes
- Funds and Fund services providers
- Bureaux de Change and Money transmission Businesses
2. To any entities, regardless of regulatory status, engaged in:
- taking deposits
- lending
- leasing
- payment services as defined in Directive 2007/64/EC
- issuing or administering means of payment
- providing guarantees
- trading in money market instruments, foreign exchange, futures and options, exchange rate instruments or transferable securities
- participating in securities issues
- advising on capital structure, or industrial strategy or advising on or providing services relating to mergers and the purchase of undertakings
- money broking
- portfolio management and advice
- safekeeping and administration of securities
- safe custody services
- issuing electronic money