Ireland - FATF-GAFI.ORG

1 September 2017 Anti-money laundering and counter-terrorist nancing measuresIrelandAnti-money laundering and counter-terrorist nancing measuresIrelandMutual Evaluation ReportThe Financial Action T ask Force (F ATF) is an independent inter-governmental body that develops and promotes policies to protect the global financial system against money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The FATF Recommendations are recognised as the global anti-money laundering (AML) and counter-terrorist financing (CTF) standard. For more information about the FATF, please visit the website: This document and/or any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.

2 This assessment was adopted by the FATF at its June 2017 Plenary meeting. Citing reference: 2017 FATF. All rights reserved. No reproduction or translation of this publication may be made without prior written permission. Applications for such permission, for all or part of this publication, should be made to the FATF Secretariat, 2 rue Andr Pascal 75775 Paris Cedex 16, France (fax: +33 1 44 30 61 37 or e-mail: FATF (2017), Anti-money laundering and counter-terrorist financing measures - Ireland , Fourth Round Mutual Evaluation Report, FATF, Paris Anti-money laundering and counter-terrorist financing measures in Ireland 2017 1 CONTENTS EXECUTIVE SUMMARY.)

3 3 Key Findings .. 3 Risks and General Situation .. 5 Overall Level of Effectiveness and Technical Compliance .. 6 Priority Actions .. 10 Effectiveness & Technical Compliance Ratings .. 12 MUTUAL EVALUATION REPORT .. 13 Preface .. 13 CHAPTER 1. ML/TF RISKS AND CONTEXT .. 15 ML/TF Risks and Scoping of Higher-Risk Issues .. 15 Materiality .. 19 Structural Elements .. 19 Background and other Contextual Factors .. 19 CHAPTER 2. NATIONAL AML/CFT POLICIES AND 31 Key Findings and Recommended Actions .. 31 Immediate Outcome 1 (Risk, Policy and Coordination) .. 32 CHAPTER 3. LEGAL SYSTEM AND OPERATIONAL ISSUES .. 39 Key Findings and Recommended Actions.

4 39 Immediate Outcome 6 (Financial intelligence ML/TF) .. 42 Immediate Outcome 7 (ML investigation and prosecution) .. 50 Immediate Outcome 8 (Confiscation) .. 58 CHAPTER 4. TERRORIST FINANCING AND FINANCING OF PROLIFERATION .. 67 Key Findings and Recommended Actions .. 67 Immediate Outcome 9 (TF investigation and prosecution).. 68 Immediate Outcome 10 (TF preventive measures and financial sanctions) .. 78 Immediate Outcome 11 (PF financial sanctions) .. 81 CHAPTER 5. PREVENTIVE MEASURES .. 85 Key Findings and Recommended Actions .. 85 Immediate Outcome 4 (Preventive Measures) .. 86 CHAPTER 6. SUPERVISION .. 95 Key Findings and Recommended Actions.

5 95 Immediate Outcome 3 (Supervision) .. 97 CHAPTER 7. LEGAL PERSONS AND ARRANGEMENTS .. 109 Key Findings and Recommended Actions .. 109 Immediate Outcome 5 (Legal Persons and Arrangements) .. 110 CHAPTER 8. INTERNATIONAL COOPERATION .. 117 Key Findings and Recommended Actions .. 117 Immediate Outcome 2 (International Cooperation) .. 118 2 Anti-money laundering and counter-terrorist financing measures in Ireland 2017 TECHNICAL COMPLIANCE 127 Recommendation 1 - Assessing Risks and applying a Risk-Based Approach .. 127 Recommendation 2 - National Cooperation and Coordination .. 130 Recommendation 3 - Money laundering offence .. 131 Recommendation 4 - Confiscation and provisional measures.

6 132 Recommendation 5 Criminalisation of 134 Recommendation 6 - Targeted financial sanctions related to terrorism and terrorist financing .. 136 Recommendation 7 Targeted financial sanctions related to proliferation financing .. 141 Recommendation 8 Non-profit organisations .. 144 Recommendation 9 Financial institution secrecy laws .. 149 Recommendation 10 Customer due diligence .. 150 Recommendation 11 Record keeping .. 153 Recommendation 12 Politically exposed persons .. 154 Recommendation 13 Correspondent banking .. 155 Recommendation 14 Money or value transfer services .. 156 Recommendation 15 New technology.

7 157 Recommendation 16 Wire transfers .. 158 Recommendation 17 Reliance on third parties .. 161 Recommendation 18 Internal controls and foreign branches and subsidiaries .. 162 Recommendation 19 Higher-risk countries .. 163 Recommendation 20 Reporting of suspicious transactions .. 164 Recommendation 21 Tipping-off and confidentiality .. 164 Recommendation 22 DNFBPs: Customer due diligence .. 165 Recommendation 23 DNFBPs: Other measures .. 166 Recommendation 24 Transparency and beneficial ownership of legal persons .. 167 Recommendation 25 Transparency and beneficial ownership of legal arrangements .. 172 Recommendation 26 Regulation and supervision of financial institutions.

8 174 Recommendation 27 Powers of supervisors .. 176 Recommendation 28 Regulation and supervision of DNFBPs .. 178 Recommendation 29 Financial intelligence unit .. 183 Recommendation 30 Responsibilities of law enforcement and investigative authorities .. 185 Recommendation 31 Powers of law enforcement and investigative authorities .. 186 Recommendation 32 Cash 187 Recommendation 33 Statistics .. 189 Recommendation 34 Guidance and feedback .. 190 Recommendation 35 Sanctions .. 193 Recommendation 36 International instruments .. 195 Recommendation 37 Mutual legal assistance .. 196 Recommendation 38 Mutual legal assistance: freezing and confiscation.

9 198 Recommendation 39 Extradition .. 199 Recommendation 40 Other forms of international co-operation .. 200 Summary of Technical Compliance Key Deficiencies .. 205 Table of Acronyms .. 210 Anti-money laundering and counter-terrorist financing measures in Ireland 2017 3 Executive Summary EXECUTIVE SUMMARY. 1. This report provides a summary of the AML/CFT measures in place in Ireland as at the date of the on-site visit from 3-17 November 2016. It analyses the level of compliance with the FATF 40 Recommendations and the level of effectiveness of Ireland s AML/CFT system, and provides recommendations on how the system could be strengthened.

10 Key Findings Ireland has a generally sound legislative and institutional AML/CFT framework. In recent years, Ireland has put in place measures to improve its understanding of risks and national coordination and cooperation is a strong point of the Irish AML/CFT system. While a substantial level of effectiveness has been demonstrated in a number of areas, further measures and resources are required for a fully effective AML/CFT system that is commensurate with the risks faced in Ireland . National coordination mechanisms such as the Anti-Money Laundering Steering Committee (AMLSC), the Cross Departmental International Sanctions Committee (CDISC) and the Private Sector Consultative Forum (PSCF) were fruitful in broadening the understanding of its ML and TF risks across all relevant agencies and with the private sector.