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 bringing Ireland into line with EU requirements and the recommendations of the Financial Action Task Force. Designated persons under the Act, including all credit and financial institutions (as defined in the Act) are required to comply with their obligations under the Act with immediate effect.
Key features of the Act
- Defines broadly the offence of money laundering
- Requires designated persons to identify non-domestic politically exposed persons (PEPs)
- Requires identification of the beneficial owners 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 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 their compliance.
Scope of the Act
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
- 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
- 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