Money laundering

Money laundering is the processing of criminal proceeds (cash and assets obtained from criminal activities) to disguise their illegal origin.

This page explains the laws against money laundering.

Ireland is also required to follow some of the recommendations of the Financial Action Task Force (FATF), an international organisation against money laundering and terrorist financing.

Ireland is also obliged to implement certain recommendations of the Financial Action Task Force (FATF) the international anti-money laundering and anti-terrorist financing body.

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 sets out the law against money laundering.

If you know or believe that property is from the proceeds of crime, it is illegal to:

• Hide the true nature, source, location, movement or ownership of the property
• Obtain, handle, keep or use it
• Transfer or convert it
• Move the property in or out of the country

Penalties

A conviction on charges of money laundering carries a maximum penalty of 14 years imprisonment and an unlimited fine.

The legislation on money laundering requires that if you open a bank account you will need to provide proof of your identity.

You may also be asked other questions, for example, about the origin of funds and the nature of your business.

Designated persons must guard against their business being used for money laundering or terrorist financing.

A designated person includes anyone who works in Ireland as:

• An auditor, external accountant, tax adviser or any person who professionally provides assistance or advice on tax matters
• An independent legal professional who assists in certain types of transactions
• A trust or company service provider
• A property service provider, where the monthly rent handled exceeds €10,000
• A casino
• A credit or a financial institution, unless specifically excepted
• A provider of gambling services, including bookmakers and online gambling companies
• A director of a private members club where there is gambling
• A service provider for virtual assets
• A trader of goods (or works of art) who gets cash payments over €10,000, whether in one transaction or in a series of linked transactions

The legislation also sets out the competent authorities to monitor designated persons and ensure they meet the legal requirements:

• The Central Bank of Ireland for credit institutions, financial institutions
• The designated accountancy bodies for auditors, external accountants, tax advisers or trust or company service providers
• The Law Society of Ireland for solicitors
• The Legal Services Regulatory Authority for barristers
• The Property Services Regulatory Authority for property service providers
• The Anti-Money Laundering Compliance Unit for other designated persons

What do I have to do if I am a designated person?

If you are a designated person, you must:

• Carry out risk assessments for your business
• Apply customer due diligence (for example, identify customers or beneficial owners)
• Report suspicious transactions to An Garda Síochána (the Financial Intelligence Unit) and the Revenue Commissioners
• Put in place specific procedures to prevent money laundering and terrorist financing

Customer due diligence obligations are designed to make it more difficult for businesses to be used by for criminal money laundering or terrorist financing.