- Central Bank launches guidelines to assist firms to prevent money laundering and terrorist financing
- Criminal Justice Act 2018 provides for enhanced customer due diligence of domestic Politically Exposed Persons
- Global money laundering estimated at between €715 billion to €1.87 trillion a year
The Central Bank of Ireland has today launched Guidelines to assist firms to meet their anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations.
Speaking at the launch, Director General, Financial Conduct, Derville Rowland said firms must adopt a risk-based approach to fulfilling their obligations and ensure that their controls, policies and procedures are fit for purpose, up-to-date, tested and kept under constant review and scrutiny.
“Effective regulation in this area strengthens the integrity of the financial sector and contributes to the safety and security of citizens by preventing drug dealers, and those engaged in human trafficking, terrorist attacks and organised crime, from using the financial system to support these activities,” she said.
“Financial institutions must know their customers, understand their customer profiles, monitor the way accounts are used and make reports of suspicions to An Garda Síochána, and the Revenue Commissioners where appropriate. It is important to note that An Garda Síochána investigate money-laundering cases, not the Central Bank,’’ she added.
The 2018 amendments to the Criminal Justice Act (2010) provided for enhanced customer due diligence of domestic Politically Exposed Persons (PEPs), their immediate families and known close associates. This comes on top of the existing requirement to perform enhanced due diligence on PEPs who reside outside the state.
“That’s because people who hold – or have held – a high political profile can pose a higher money laundering risk to firms as their position may make them vulnerable to corruption such as accepting bribes or contributions to election campaigns and political parties in return for advantages.’’
Director General Rowland’s full address can be read here.
- The 4th EU Anti-Money Laundering Directive was transposed into Irish law as 2018 amendments to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
- The 2019 Report of the Basel AML Index found Ireland to be one of the best performing countries in relation to the transparency of public disclosures, the openness of budgets and public accountability.
- Estimates suggest that between two and five per cent of global GDP is laundered each year i.e. between €715 billion and €1.87 trillion.