Ahern publishes Criminal Justice (Money Laundering) Bill 2009
The Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern T.D., has today published the Criminal Justice (Money Laundering) Bill 2009 which will transpose the 3rd EU Money Laundering Directive into Irish Law. The Government has given approval for the priority consideration of this Bill by the Oireachtas in the Autumn session.
In addition to transposing the requirements of the EU Money Laundering Directive the Bill will also give effect to certain recommendations of the Financial Action Task Force (FATF) the international anti money laundering and anti terrorist financing body which carried out a mutual evaluation report in 2006 on Ireland’s measures to combat money laundering and the financing of terrorism.
Minister Ahern said: "In developing this legislation, I propose to consolidate Ireland’s existing anti money laundering and terrorist financing laws, which are primarily contained in the Criminal Justice Act 1994. I have therefore decided to repeal and re-enact these provisions in a single consolidated piece of legislation."
The 3rd EU Money Laundering Directive increases the obligations on credit and financial institutions and on lawyers, accountants, estate agents and others in relation to money laundering and terrorist financing throughout the European Union. The Bill contains requirements on the part of the designated bodies covered by the legislation to identify customers, to report suspicious transactions to An Garda Síochána and to the Revenue Commissioners and to have specific procedures in place to provide to the fullest extent possible for the prevention of money laundering and terrorist financing.
Minister Ahern continued: "While Ireland already has strong anti money laundering and anti terrorist financing legislation in place, we need a Bill as extensive and as comprehensive as the one now being published to ensure full compliance with all of the requirements of the EU Directive and with the recommendations of the FATF. We need to ensure that our own anti money laundering regime in second to none. It is my intention to have this Bill considered by the Oireachtas as a matter of priority when it resumes in the Autumn."
The full text of the Bill is available on the Oireachtas website www.oireachtas.ie
28 July 2009
Note to Editors
Criminal Justice (Money Laundering and Terrorist Financing) Bill 2009
The main purpose of this Bill is to transpose the Third EU Money Laundering Directive (60/2005/EC) into Irish law. The Bill is also intended to ensure compliance with the recommendations of the third mutual evaluation report on Ireland of the Financial Action Task Force, (FATF). The Bill also proposes to repeal and re-enact the current anti – money laundering legislation contained in other statutes, principally the provisions relating to money laundering contained in the Criminal Justice Act 1994, which is the Act containing most of Ireland’s current anti-money laundering provisions.
It is a very lengthy and complicated Bill containing 121 Sections in all.
The Bill consolidates all of Ireland’s anti money laundering legislation in a single statute. It increases the obligations on a wide range of legal persons, including credit and financial institutions, lawyers, accountants, estate agents, trust and company service providers, tax advisers and others in relation to money laundering and terrorist financing.
It contains requirements on the part of designated bodies covered by the legislation, such as Banks, Lawyers, Accountants, Real Estate Agents, and dealers in high value goods, to identify customers, to report suspicious transactions to An Garda Síochána and the Revenue Commissioners and to have specific procedures in place to provide to the fullest extent possible for the prevention of money laundering and terrorist financing.
It provides that the categories of designated bodies in respect of which there is no supervisory or competent authority, for example the Law Society in respect of solicitors and the Financial Regulator in respect of credit and financial institutions, such as tax advisers who are not accountants or solicitors, and dealers in high value goods, that is, those who may receive cash receipts of €15,000 or more, will be monitored for the purposes of compliance with the Bill, by the Department of Justice Equality and Law Reform. The latter category includes people such as car and boat dealers, jewellers, art dealers and others.
A significant change introduced in this Bill is the requirement for the designated persons covered by the Bill to undertake specific effective customer due diligence measures at the outset of a business relationship and certain other measures during the course of the business relationship.
For the first time Private Member’s Gaming clubs will be included in the legislation and will be required to comply with all of the requirements of the money laundering and terrorist financing legislation and will be monitored by the Department to ensure compliance.
Detailed note on each section attached.