The Minister for Justice Equality and Law Reform has published the Criminal Justice (Money Laundering and Terrorist Financing) Bill 2009.
The main purpose of the Bill is to transpose the third EU Money Laundering Directive (2005/60/EC) into 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 proposes to repeal and re-enact current anti money laundering legislation contained in other statutes including the provisions contained in the Criminal Justice Act 1994.
The Bill proposes the introduction of a number of significant changes with regard to customer due diligence. This will include a requirement to identify the 'beneficial owner' in respect of of prospective customers and or clients and a two-tier approach to customer identification based on low risk and high risk assessments. The Bill also introduces enhanced customer due diligence for 'politically exposed persons' residing outside the State.
The Law Society will be formally identified as the competent authority for solicitors in respect of anti money laundering requirements.
In tandem with the changes proposed in the Bill it will introduce an authorisation and registration procedure for persons carrying on the business of specified trust and company services which are not already regulated as members of a designated accountancy body or who are not a barrister or a solicitor or a credit institution or financial institution.
The Bill will also require the registration of private members clubs and these will be required to comply with all of the requirements on money laundering and terrorist financing legislation. Such clubs will be monitored by the Department of Justice Equality and Law Reform to ensure compliance.