Minister of State Browne welcomes passage of legislation to help combat money laundering and tackle white collar crime

Minister of State Browne welcomes passage of legislation to help combat money laundering and tackle white collar crime

11 March, 2021

Minister of State with responsibility for Law Reform, James Browne TD, today welcomed the passage through the Dáil of two pieces of criminal legislation,

• The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill - which will strengthen existing anti-money laundering legislation and will give effect to provisions of the Fifth EU Money Laundering Directive, and

• The Criminal Justice (Theft and Fraud Offences) (Amendment) Bill, which gives effect to EU Directive 2017/1371 on the fight against fraud to the European Union's financial interests by means of criminal law.

Addressing the passing of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill, the Minister said,

'This Bill ensures that our regulatory framework keeps pace with the increasing integration of financial flows in the internal market, the evolving trends, technological developments and the prevention of organised crime.

'In line with international standards adopted by the Financial Action Task Force, and the European Union's legislative framework, Ireland has developed a solid regulatory framework for preventing money laundering.'

This Bill will strengthen existing anti-money laundering legislation and contains a renewed focus on gatekeepers of financial systems. It ensures that there is increasing transparency by bringing further institutions within the scope of the Irish anti-money laundering regulatory framework and by combatting the use of new trends and technologies employed by criminals.

Commenting on the passing of the Criminal Justice (Theft and Fraud Offences) (Amendment) Bill, Minister of State Browne said,

'Fraud against the EU's financial interests affects everyone, and this Bill reflects an important update of Ireland's already strong regime against it. Tackling economic crime and white-collar crime is a priority for this Government and for An Garda Síochána.

'The Department published the findings of the Hamilton Review Group on 3 December 2020 and, as Minister McEntee pointed out at that time, these crimes damage our economy, breed cynicism in our society and are a threat to our international reputation.

'The Department of Justice is leading a cross-Government initiative to tackle these crimes and to ensure that all agencies have the resources they need.'

The Directive establishes minimum rules concerning the definition of criminal offences and sanctions with regard to combatting fraud and other illegal activities (corruption and money laundering) affecting the EU's financial interests.

Minister Browne concluded,

'By passing these 2 important pieces of legislation today, we are giving effect to the current EU Anti-Money laundering measures and providing for the changes necessary to ensure Ireland plays its part in tackling fraud against the interests of the European Union.

'This is not only important in the context of honouring our commitments as an EU Member State but is also important in showing that our dedication to combatting money laundering and tackling white collar crime are reflected at a national level and in our engagements with our European counterparts.'

Both Bills will now be sent to President Higgins for his signature.

ENDS…/

Notes for Editors:

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill:

• Brings several new designated persons under the existing legislation, including property services providers, as well as dealers and intermediaries in the art trade
• limits the anonymity related to virtual assets service providers and wallet providers, but also for pre-paid cards
• broadens the criteria for the assessment of high-risk third countries and improve the safeguards for financial transactions to and from such countries
• enhances the customer due diligence requirements of the existing legislation
• prevents credit and financial institutions from creating anonymous safe-deposit boxes
• provides for ministerial guidance, which will clarify domestic prominent public functions.

The Bill also transposes a number of non-criminal justice elements of the Directive, the responsibility of the Department of Finance, including provisions relating to VASPs, including a registration and supervision regime. The additions will capture the more recent international standards set out in the Financial Action Task Force Recommendations in relation to VASPs.

Criminal Justice (Theft and Fraud Offences) (Amendment) Bill

EU Directive 2017/1371 replaces the EU Convention on the protection of European Communities' financial interests and the three related protocols, which were given effect in Ireland in Part 6 of the Criminal Justice (Theft and Fraud Offences) Act 2001. Part 6 created specific offences of fraud against the Communities' financial interests as well as corruption affecting the Communities' interests, with ancillary provisions relating to jurisdiction and other matters.

This Bill is relatively short and makes a number of amendments to Part 6 of the 2001 Act. The Bill

• includes an expanded definition of fraud affecting the Union's financial interests (notably including VAT fraud)
• provide for a new offence of misappropriation.
• Provides for liability arising from offences by a body corporate.

Other provisions in the Directive are already provided for in existing legislation. In particular, corruption aspects of the Directive have already been transposed by the general corruption offences in the Criminal Justice (Corruption Offences) Act 2018 and the principal offence of money laundering is provided for in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

An amendment to the Criminal Justice Act 1994 provides freezing and confiscation of proceeds from criminal offences arising under the Directive.

The Department of Finance is engaged in giving effect to certain provisions of the Fifth EU Money Laundering Directive (EU) 2018/843. The Department of Finance is progressing elements of the transposition, pertaining to the beneficial ownership of legal entities (Article 30), of trusts (Article 31), of bank and payment accounts and safe deposit boxes (Article 32a) and the registration and supervision of Virtual Assets Services Providers ('VASPs') (Article 47). The Department of Finance will also progress the necessary legislation for the interconnectivity of registers. Directive (EU) 2018/843 provides that this must be effected by March 2021.

Public link

Please use the above public link if you want to share this noodl on another website.