State targets crypto and gambling in AML strategy
The Government has launched its first anti-money-laundering (AML) strategy, describing it as “a comprehensive plan strengthen the State’s response to financial crime”.
The document sets out planned changes that include tighter rules on crypto-assets and crypto-currency transfers, measures to increase transparency on company ownership, and new disclosure requirements for limited partnerships and other corporate vehicles.
The strategy also includes strong supervision of financial institutions and sectors seen as particularly vulnerable to money-laundering, such as gambling.
There are also plans to strengthen intelligence-sharing between Government departments, An Garda Síochána, Revenue, FIU Ireland, the Criminal Assets Bureau, the Central Bank, and financial institutions.
‘Real harm’
Tánaiste and Minister for Finance Simon Harris said that financial crime caused “real harm” to people, families, businesses, and communities, adding that criminal organisations were becoming increasingly sophisticated.
“They are exploiting new technologies, crypto-assets, and complex international financial networks to conceal criminal profits. Government must continue to stay ahead of those threats,” he stated.
Ireland’s domestic framework on AML/CFT (countering financing of terrorism) is underpinned mainly by the Criminal Justice Act 2010, which transposes the EU’s AML directives into Irish law.
The strategy states that work on the necessary transposing legislation for the sixth EU AML directive, known as 6AMLD, is proceeding across Government departments.
Much of this will involve amendments to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended), along with a number of statutory instruments.
New registers
Measures linked to beneficial ownership are currently being transposed by the Department of Finance, with legislation introducing three new registers:
- Register of Beneficial Ownership of Companies and Industrial and Provident Societies (based within the Companies Registration Office),
- Central Register of Beneficial Ownerships of Trusts (based within Revenue), and
- Beneficial Ownership Register of Certain Financial Vehicles (based within the Central Bank).
The Department of Finance will also seek to introduce mandatory disclosure of the ultimate beneficial owners and controllers of all limited partnerships, according to the strategy.
The department will also engage with interested parties on setting up a single point of access to property information, in line with article 18 of 6AMLD and relevant parts of the Anti-Money Laundering Regulation (AMLR) that must be in place by July 2029.
Machine-based gambling
The document says that legislation to transpose EU rules on crypto transfers is “well advanced”.
It also commits the Department of Finance to introducing legislation to enable Revenue to publish a list of special-purpose entities (SPEs) availing of the section 110 regime of the Taxes Consolidated Act 1997.
The document contains measures on gambling that include:
- Casino clubs operating machine-based gambling will be brought under a “more robust” regulatory framework, with stricter enforcement of licence conditions and AML obligations,
- An industry standard will be established relating to the acceptance of crypto-related activities as a source of funds to ensure appropriate due diligence is performed and the legitimacy of the funds is verified, and
- Gambling service providers will be required to adopt a 'closed loop' system, whereby payments to customers are made using the same payment account used for depositing funds.