Money Laundering
Criminal Justice (Money Laundering and Financing Terrorism) Act 2010
Obligations on others to counteract money laundering
Offences related to money laundering
Phases of money laundering process
A way in which criminals attempt to turn cash and other assets obtained from criminal conduct into genuine assets, in an effort to disguise the original source of the assets.
The offence requires either honest belief or reckless disregard that the property is proceeds of criminal conduct.
Defined as
Converting, transferring, handling , acquiring, possessing or using the property
Removing the property from, or bringing the property into the State
Concealing or disguising the true nature, source, location, disposition, movement or ownership of the property or any rights relating to the property
Layering: involves the transfer of money from business to business, or place to place in order to conceal its initial source
Integration: culmination of the previous procedures through which the money takes on the appearance of coming from a legitimate source
Placement: the initial disposal of the proceeds of criminal activity into an apparently legitimate business activity or property
Designated persons are obliged to guard their businesses against being used for money laundering or terrorist financing purposes.
Credit institutions and providers: An Post, credit unions, stockbrokers
Firms and professionals including: accountants, auditors, tax advisors, legal advisors, auctioneers and estate agents, gambling activities providers
Financial institutions: banks, building societies, funds, fund service providers, money lenders, life assurance companies
Those designated bodies are required to undertake customer due diligence prior to
Providing a service
Engaging in an occasional transaction in excess of €15.000
Establishing a business relationship with the customer
Due diligence requires them to
Identify any beneficial owner connected with the customer/service concerned (e.g. a company)
Obtain information in relation to the purpose and nature of the business relationship
Establish the identity of customers based on reliable documents or information (e.g. documents from a government source)
Monitor dealings with a customer to ensure the source of wealth/funds for those transactions is legitimate
The level of due diligence will be determined using a risk based approach
When an auditor comes to the opinion that a company have committed money laundering, he must notify the ODCE, the Garda Siochana and the Revenue Commissioners.
Failure to Report the knowledge/suspicion of money laundering
Tipping off disclosing information to anyone that may prejudice the investigation into the criminal offence
Sanctions
Indictment: imprisonment up to 14 years and/or unlimited fine
Summarily: imprisonment up to 12 months or a fine up to €5.000
There is a set of preventative procedures required by the Central Bank that all companies must comply with