Enhanced Money Laundering RulesThe Criminal Justice Act 2013 (2013 Act) was enacted by the President of Ireland on 12 June 2013 and the relevant anti money laundering provisions of the Act entered into force on 14 June 2013.

The purpose of the Act is as follows:

  • To address weaknesses in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (2010 Act)that have come to light since its enactment
  • To provide for the cessation of mobile phone services in the use of terrorist bombings
  • To ensure a closer alignment of Irish law with international standards set by the Financial Action Task Force

Changes to the 2010 Act include the following:

  • While the 2010 Act provides that enhanced customer due diligence (CDD) must be undertaken in respect of proposed customers that are politically exposed persons, the 2013 Act provides that such measures must also be applied to existing customers that become politically exposed persons.
  • The 2010 Act provides that where a designated person has reasonable grounds to believe that there is a higher risk of money laundering or terrorist financing, the designated person may apply additional CDD measures. The 2013 Act amends this approach to make this a mandatory requirement.
  • A designated person must now have in place policies and procedures for keeping documents or information held in relation to a customer up-to-date.
  • The Central Bank may now require a designated person to take specific actions or to establish specific processes or procedures that, in its opinion, are reasonably necessary for the purpose of complying with any specific provision of the 2013 Act.

Contributed by Ross Little of William Fry.