Money laundering in Ireland

Rules

Financial institutions are obliged to take certain special measures to prevent money laundering. One of these measures is the requirement that financial institutions establish the identity of customers and report any suspicions of money laundering directly to the police.

From 15th September 2003, other designated professions will be required to use the same measures as financial institutions to combat money laundering. These professions include:

• accountants
• auctioneers
• auditors
• estate agents
• tax advisors
• solicitors
• investment business firms
• agencies that provide money remittance services (i.e., those that 'wire' money from one place to another)
• dealers in high value goods (i.e., precious stones, metals, works of art where payment is made in cash for a sum of 15,000 euro or more)
• casinos*
• administration companies providing services to collective investment schemes

* (Even though casinos are illegal in Ireland, they have been included on the list as a result of recent judgements of the European Court. These judgements found that even though casinos are illegal in Ireland, EU member states must still ensure all provisions of the money laundering directive are set down in national law).

For some the above professions, limitations on the reporting of transactions have been included. For example, the reporting requirements do not apply to accountants, auditors, solicitors or tax advisors with regard to information they receive from or in relation to a client in some circumstances, these circumstances include:

(a) when ascertaining the legal position for that client

(b) when defending or representing a client in or concerning judicial proceedings or

(c) when advising a client in relation to instituting, avoiding or defending judicial proceedings whether such information is receied or obtained before, during or after such proceedings.

Proof of identity

If you wish to open an account with a financial institution (i.e., post office, bank, building society or credit union) for the first time, you must display evidence of your identity (including a photograph) and evidence of your permanent address. If you do not wish to open an account with a financial institution but wish to carry out transactions (usually greater than 13,000 euro), you must show evidence of your name and address from two different sources. Here are some examples:

Documents providing evidence of your name:

• Passport
• Driving licence
• Current identity card with photograph from a known employer
• Current student identity card with a photograph issued by a known third-level college
• Identification card with photograph issued by the Garda Siochana

A USIT or International Student Identity (ISIC) student card is not acceptable, nor is a bus pass.

Documents providing evidence of your address:

• Recent original household bill in your name (i.e., electricity, telephone, gas, etc.)
• Current driving licence
• Identification card with photograph issued by the Garda Siochana
• Pension/benefit book issued by the Department of Social Protection
• Recent original bank or building society statement in your name
• Entry in the electoral register or a telephone or street directory
• An Post savings or investment document in your name

Financial institutions have alternative arrangements in place for establishing your identity if you do not possess the above documentation - for more information, contact the relevant financial institution.

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

It is also an offence under the Criminal Justice Act, 1994 for a person to provide advice or assistance to anyone engaged in money laundering.