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Industry Updates

Ireland Implements 5MLD

27 Apr 2021

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 ("CJA 2021") transposes provisions of the fifth Anti-Money Laundering Directive EU/2018/843 ("5MLD") into Irish law1

CJA 2021 – Key Measures

CJA 2021 became effective on 23 April 2021.

It introduces a range of reforms into Irish law from 5MLD2 in the area of anti-money laundering and counter-terrorist financing ("AML / CTF") including:

  • Extending the categories of entities in the scope of the requirements ("Designated Persons") to include art dealers, tax advisors, letting agents and virtual asset service providers3;
  • Requiring Designated Persons to check, in relevant cases, that the customer has made the necessary filing in the relevant central register of beneficial ownership prior to establishing a business relationship;
  • Prescribing in detail the enhanced customer due diligence measures to be applied when dealing with a customer established or residing in a 'high risk third country' (as per the list maintained by the European Commission);
  • Requiring the Garda Financial Intelligence Unit, where practicable, to provide timely feedback to a Designated Person following a suspicious transactions report being made; and
  • Introducing measures to further facilitate transparency between Designated Persons and its customers by restricting the use of anonymous prepaid cards as payment methods or prohibiting the use of anonymous safe-deposit boxes for customers.

Further EU AML / CTF Reform

CJA 2021 arrives at a time when further EU reform is expected in the area of AML / CTF following the Action Plan4 published by the European Commission on 7 May 2020.  One proposed element of the Action Plan is the introduction of a single EU rulebook.  An AML legislative package is due to be considered by the Commission in May 2021.

How the Maples Group Can Help

We are working with clients in updating their policies and legal framework documentation to reflect the new measures in CJA 2021.  We are also assisting clients with revised training programmes and enhancements to their operating processes.

Further Information

For further information, please reach out to your usual Maples Group contact or any of the persons listed below.


1 The deadline for transposition into national law expired on 10 January 2020

2 Ireland had previously implemented measures relating to beneficial ownership registers from 5MLD

3 Introducing the Irish AML Regime For Crypto Providers

4 Anti-Money Laundering Terrorism Financing Action Plan 

Related Services

Irish Financial Services Regulatory

Our Financial Services Regulatory group in Ireland comprises of leading lawyers and experienced industry professionals with a wealth of experience in advising clients on regulatory requirements and how to manage regulatory risk within their business.  Our highly technical team deliver pragmatic and solutions-focused advice to our clients. 

 

Anti-money Laundering & Counter-terrorism Financing Compliance

Our global team of regulatory lawyers provides expert legal advice to BVI, Cayman Islands, Irish, Jersey and Luxembourg entities regarding AML and CTF compliance including development and assessment of AML / CTF and risk management systems, KYC and customer due diligence best practices, conduct of money laundering and fraud proceedings and provision of expert evidence on AML / CTF and regulatory obligations.