By Andrew Lambe, Company Bureau. 23rd April 2010
The long awaited Criminal Justice (Money Laundering and Terrorist Financing) Bill , 2009 which will give effect to the 3rd Money Laundering EU Directive 2005/60/EC (“the 3MLD”) is due to be passed in the next few months, after a list of Proposed Report Stage Amendments was approved by the Seanad (Ireland’s upper house)
The 3MLD places greater emphasis and focus on monitoring and compliance for Professional Advisors in Ireland. The Bill contains 23 sections dedicated to monitoring and compliance, for example, Professional Advisors will be required to carry our full due diligence on their clients, and keep this on record for up to 7 years. Compliance with the bill will be enforced by competent authorities, for example the Law Society in respect of lawyers and the Financial Regulator in respect of credit and financial institutions. These authorities will be monitored for the purposes of compliance with the Bill and any breach of the compliance procedure will give rise to potential sanctions. It is incumbent on these authorities to report any suspicious transactions to An Garda Síochána (Irish Police) and the Revenue Commissioners and to have specific procedures in place to provide to the fullest extent possible for the prevention of money laundering and terrorist financing. Moreover, for financial and credit institutions, among others, breach of the money laundering control procedures will now give rise not just to potential criminal sanctions prescribed under the legislation but, in addition, the administrative sanctions operated by the Financial Regulator. It is anticipated that this Bill will be passed into law by Autumn 2010 at the latest.
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