Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

•  Print 
• Email

 The Third Anti-Money Laundering Directive (2005/60/EC) was transposed into Irish law by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (“Act”) on the 5th May 2010. It commenced into law on the 15th July 2010.

The aim of this Act was to bring Ireland into line with EU requirements and the recommendations of the Financial Action Task force.

Key Changes 

This Act brought in many changes to previous money laundering legislation. These include:

• Widening of the definition of money laundering.

• Introduced the new term ‘Customer Due Diligence (CDD)’ and that the level of CDD required will be determined using a risk-based approach.

• Introduced the new term ‘Designated Person’ to replace the previous ‘Designated Body’

• CDD can be broken down into three categories – Simplified, Standard and Enhanced

• Enhanced obligations to identify and verify beneficial owners of customers

• Identify and verify ‘Politically Exposed Persons’ and to have enhanced on-going monitoring of these accounts/transactions

• Trust and Company Service Providers are required to be authorised

• Central Bank of Ireland are the State Competent Authority for Regulated entities who fall under the legislation

• Department of Justice are the State Competent Authority for other Designated Persons that fall under the legislation

• A guard at superintendent level or higher and/or a District Court judge has the power to direct a designated person not to carry out a transaction where a customer is being investigated. 

Who does the Act Apply to?

The Act applies to 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

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 guarantee

• 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

Other persons:

• 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 effectively directs a private members’ club at which gambling activities are carried on, but only in respect of those gambling activities

•  any person trading in goods, but only in respect of transactions involving payments, to the person in cash, of a total of at least €15,000 (whether in one transaction or in a series of transactions that are or appear to be linked to each other) or

•  any other person of a prescribed class.

For a copy of the Act click here