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

Publication Date:January 01, 2018
 
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Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018

2018 26

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 2015

[73 2015]

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

1 Preliminary and General

PART 1

Preliminary and General

S-1 Short title, commencement and collective citation

1 Short title, commencement and collective citation

(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.

S-2 Definitions

2 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.

2 Amendment of Act of 2010

PART 2

Amendment of Act of 2010

S-3 Amendment of section 2 of Act of 2010

3 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 1on 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.”.

2 OJ No. L 141, 5.6.2015, p. 73

S-4 Amendment of section 24(1) of Act of 2010

4 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 2on 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 3on 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 4on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community on behalf of its clients,

(d) an investment business firm within the meaning of the Investment Intermediaries Act 1995 (other than a non-life insurance intermediary within the meaning of that Act),

(e) a collective investment undertaking that markets or otherwise offers its units or shares,

(f) an insurance intermediary within the meaning of the Insurance Mediation Directive (other than a tied insurance intermediary within the meaning of that Directive) that provides life assurance or other investment-related services, or

(g) An Post, in respect of any activity it carries out, whether as principal or agent—

(i) that would render it, or a principal for whom it is an agent, a financial institution as a result of the application of any of the foregoing paragraphs,

(ii) that is set out at reference number 1 in the Schedule to the European Union (Capital Requirements) Regulations 2014, or

(iii) that would render it, or a principal for whom it is an agent, an investment business firm within the meaning of the Investment Intermediaries Act 1995 (other than a non-life insurance intermediary within the meaning of that Act) if section 2(6) of that Act did not apply;”,

(h) by the substitution of the following definition for the definition of “group”:

“ ‘group’ means a group of undertakings which consists of a parent undertaking, its subsidiaries, and the entities in which the parent undertaking or its subsidiaries hold a participation, as well as undertakings linked to each other by a relationship within the meaning of Article 22 of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 20136 5on the annual financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC;”,

(i) by the insertion of the following definition after the definition of “group”:

“ ‘high-risk third country’ means a jurisdiction identified by the European Commission in accordance with Article 9 of the Fourth Money Laundering Directive;”,

(j) by the deletion of the definition of “Life Assurance Consolidation Directive”,

(k) by the insertion of the following definitions after the definitions of “member”:

“ ‘monitoring’, in relation to a business relationship between a designated person and a customer, means the designated person, on an ongoing basis—

(a) scrutinising transactions, and the source of wealth or of funds for those transactions, undertaken during the relationship in order to...

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