Ireland announces new anti-money laundering bill
Ireland moves towards implementing the European Union’s 3rd Anti-Money Laundering Directive, which it failed to implement earlier, with the publication of a new bill by the Minister of Justice. The draft legislation implements the requirements of the EU 3rd Anti-Money Laundering Directive, and has the purpose to integrate it into the Irish law.
Actually, the new document significantly changes anti money laundering regulations order in Ireland. It increases the obligations on financial institutions, lawyers, accountants and state agencies to monitor and report any suspicious activities. Also, all relevant bodies would have to implement specific anti-money laundering procedures and report suspicious transactions.
Sinead Ovenden, Director of Compliance and Regulation of Deloitte, said that the new anti-money laundering legislation has been much anticipated. In his opinion, the change to existing AML requirements means that financial services institutions can reduce the level of customer due diligence on a risk sensitive basis. The new approach will redirect resources within financial institutions to areas of higher risk.
A move towards a risk based approach to the prevention of money laundering is one of the most important changes in the Directive, which is not characteristic yet for the Irish money laundering regime.
However some specialists say that financial services institutions, particularly smaller enterprises, face a challenge if they are to implement the necessary changes before the bill is passed into law. The most controversial issue of the Directive is already named, and it is the obligation to make enhanced due diligence for politically exposed persons (PEPs).
Most banks and other financial institutions will be required to adopt the legislation once passed. This is expected to happen in the autumn. The Financial Regulator will supervise Financial Services entities under the new legislation.