Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 implemented in Ireland
On May 5, 2010, the 3rd Anti-Money Laundering Directive (2005/60/EC) was finally transposed in Ireland by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. The aim of the 3rd Directive is widening the scope of previous legislation on anti-money laundering and terrorist financing based on the revised recommendations of the Financial Action Task Force (FATF).
According to the confirmation made by the Department of Justice and Law Reform, the commencement date for the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 will be July 15, 2010. The exception is Chapter 9 of Part 4 (Authorisation of Trust and Company Service Providers) that leaves a very short time frame for designated persons to comply with the new rules.
The responsibilities of designated persons as regards preventing and detecting money laundering and terrorist financing has widened significantly with the implementation of the new Act. The new legislation is aimed to consider the implications of the increased responsibilities on designated persons, including credit institutions, financial institutions, life assurance companies and intermediaries providing life assurance and other investment related services, auditors, external accountants, tax advisors, independent legal professionals, trust or company service providers, property service providers, casinos, private members’ clubs in relation to gambling activities and any person who is trading in goods in cash for a total of at least EUR 15 000.
As the Act will be commencement on July 15, 2010, designated persons need to ensure that their policies and procedures are updated in order to meet and comply with the new requirements. Non-compliance with the requirements may result in a prison sentence of up to 5 years and/or a fine.