Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018

JurisdictionIreland
CitationIR No. 26/2018


Number 26 of 2018


CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) (AMENDMENT) ACT 2018


CONTENTS

PART 1

Preliminary and General

1. Short title, commencement and collective citation

2. Definitions

PART 2

Amendment of Act of 2010

3. Amendment of section 2 of Act of 2010

4. Amendment of section 24(1) of Act of 2010

5. Amendment of section 25 of Act of 2010

6. Beneficial owner in relation to bodies corporate

7. Amendment of section 27 of Act of 2010

8. Amendment of section 28 of Act of 2010

9. Amendment of section 30 of Act of 2010

10. Risk assessment by designated persons

11. Amendment of section 33 of Act of 2010

12. Electronic money derogation

13. Simplified customer due diligence

14. Amendment of section 35 of Act of 2010

15. Examination of background and purpose of certain transactions

16. Amendment of section 37 of Act of 2010

17. Correspondent relationships with third-country respondent institutions

18. Enhanced customer due diligence - high-risk third countries

19. Enhanced customer due diligence in cases of heightened risk

20. Amendment of section 40 of Act of 2010

21. Functions of State Financial Intelligence Unit

22. Amendment of section 42 of Act of 2010

23. Amendment of section 44 of Act of 2010

24. Amendment of section 51 of Act of 2010

25. Amendment of section 52(2)(c) of Act of 2010

26. Internal policies, controls and procedures

27. Amendment of section 55 of Act of 2010

28. Amendment of section 56 of Act of 2010

29. Group-wide policies and procedures

30. Additional measures where implementation of policies and procedures is not possible

31. Relationships between certain institutions and shell banks

32. Amendment of section 62(1) of Act of 2010

33. Defence

34. Obligation for certain designated persons to register with Central Bank of Ireland

35. Managers and beneficial owners of private members’ clubs - certificates of fitness

36. Prescribed amounts under section 33AQ of Central Bank Act 1942 in respect of certain contraventions

37. Amendment of Schedule 2 to Act of 2010

38. List of factors which suggest potentially lower risk

39. List of factors which suggest potentially higher risk

40. Repeals

PART 3

Consequential Amendments

41. Consequential amendments


Acts Referred to

Central Bank Act 1942 (No. 22)

Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (No. 6)

Criminal Justice (Theft and Fraud Offences) Act 2001 (No. 50)

Criminal Justice Act 2013 (No. 19)

Freedom of Information Act 2014 (No. 30)

Gaming and Lotteries Acts 1956 to 2013

Investment Intermediaries Act 1995 (No. 11)

Investor Compensation Act 1998 (No. 37)

Taxes Consolidation Act 1997 (No. 39)


Number 26 of 2018


CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) (AMENDMENT) ACT 2018


An Act to amend the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 to give effect to certain provisions of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 20151 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC, and to provide for related matters.

[14th November , 2018]

Be it enacted by the Oireachtas as follows:

PART 1

Preliminary and General

Short title, commencement and collective citation

1. (1) This Act may be cited as the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018.

(2) This Act shall come into operation on such day or days as the Minister for Justice and Equality may appoint by order, or orders, either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

(3) The Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 and 2013 and this Act may be cited together as the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2018.

Definitions

2. In this Act—

“Act of 2010” means Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 ;

“Act of 2013” means Criminal Justice Act 2013 .

PART 2

Amendment of Act of 2010

Amendment of section 2 of Act of 2010

3. Section 2 of the Act of 2010 is amended—

(a) in subsection (1)—

(i) by the deletion of the definition of “Implementing Directive”, and

(ii) by the insertion of the following definition before the definition of “Minister”:

“ ‘Fourth Money Laundering Directive’ means Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 20152 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC;”,

and

(b) by the substitution of the following subsection for subsection (2):

“(2) A word or expression used in this Act and also used in the Fourth Money Laundering Directive has, unless the contrary intention appears, the same meaning in this Act as in that Directive.”.

Amendment of section 24(1) of Act of 2010

4. Section 24(1) of the Act of 2010 is amended—

(a) by the insertion of the following definitions after the definition of “business relationship”:

“ ‘business risk assessment’ has the meaning given to it by section 30A;

‘Capital Requirements Regulation’ means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 20133 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012;

‘collective investment undertaking’ means—

(a) an undertaking for collective investment in transferable securities authorised in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 ( S.I. No. 352 of 2011 ) or otherwise in accordance with the Directive of 2009,

(b) an alternative investment fund within the meaning of the European Union (Alternative Investment Fund Managers) Regulations 2013 ( S.I. No. 257 of 2013 ),

(c) a management company authorised in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 or otherwise in accordance with the Directive of 2009, or

(d) an alternative investment fund manager within the meaning of the European Union (Alternative Investment Fund Managers) Regulations 2013;”,

(b) by the insertion of the following definition after the definition of “competent authority”:

“ ‘correspondent relationship’ means—

(a) the provision of banking services by one bank as the correspondent to another bank as the respondent, including providing a current or other liability account and related services, such as cash management, international funds transfers, cheque clearing, payable-through accounts and foreign exchange services, or

(b) the relationships between and among credit institutions and financial institutions including where similar services are provided by a correspondent institution to a respondent institution, and including relationships established for securities transactions or funds transfers;”,

(c) in the definition of “credit institution” by the substitution of the following paragraph for paragraph (a):

“(a) a credit institution within the meaning of point (1) of Article 4(1) of the Capital Requirements Regulation, or”,

(d) by the insertion of the following definition after the definition of “designated person”:

“ ‘Directive of 2009’ means Directive 2009/65/EC of the European Parliament and of the Council of 13 July 20094 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS);”,

(e) by the insertion of the following definition after the definition of “EEA State”:

“ ‘electronic money’ means electronic money within the meaning of the European Communities (Electronic Money) Regulations 2011 ( S.I. No. 183 of 2011 );”,

(f) by the deletion of the definition of “Electronic Money Directive”,

(g) by the substitution of the following definition for the definition of “financial institution”:

“ ‘financial institution’ means—

(a) an undertaking that carries out one or more of the activities set out at reference numbers 2 to 12, 14 and 15 of the Schedule to the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158 of 2014 ) or foreign exchange services, but does not include an undertaking—

(i) that does not carry out any of the activities set out at those reference numbers other than one or more of the activities set out at reference number 7, and

(ii) whose only customers (if any) are members of the same group as the undertaking,

(b) an insurance undertaking within the meaning of Regulation 3 of the European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 ), in so far as it carries out life assurance activities,

(c) a person, other than a person falling within Regulation 4(1) of the European Union (Markets in Financial Instruments) Regulations 2017 ( S.I. No. 375 of 2017 ), whose regular occupation or business is—

(i) the provision to other persons, or the performance, of investment services and activities within the meaning of those Regulations, or

(ii) bidding directly in auctions in accordance with Commission Regulation (EU) No 1031/2010 of 12 November 20105 on the...

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