Ireland – Know Your Customer (KYC) Rules

 

 

Ireland is a significant European financial hub, with offices of a number of international banks established in Dublin. The primary sources of funds laundered in Ireland are prostitution, cigarette smuggling, drug trafficking, fuel laundering, domestic tax violations and welfare fraud. While money laundering occurs via credit institutions such as banks, money has also been laundered through schemes involving remittance companies, solicitors, accountants, and second-hand car dealerships.

According to law enforcement officials, money is most commonly laundered through the purchase of high value goods for cash; the transfer of funds from overseas through Irish credit institutions; the filtering of funds via complex company structures; and the purchase in Ireland of Irish and foreign real property.

KNOW-YOUR-CUSTOMER (KYC) RULES:

 

Enhanced due diligence procedures for PEPs:

 

PEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used interchangeably

    • Foreign PEP: YES
    • Domestic PEP: YES

Ireland – KYC covered entities

 

The following is a list of Know Your Customer entities covered by Irish Law:

    • Banks
    • Building societies
    • The post office
    • Stock brokers
    • Credit unions
    • Bureaux de change
    • Life insurance companies
    • Insurance brokers

Ireland – Suspicious Transaction Reporting (STR) Requirements:

 

Number of STRs received and time frame: 13,416 in 2010

The following is a list of STR covered entities covered by Irish Law:

    • Banks
    • Building societies
    • The post office
    • Stock brokers
    • Credit unions
    • Bureaux de change
    • Life insurance companies
    • Insurance brokers

MONEY LAUNDERING CRIMINAL PROSECUTIONS/CONVICTIONS:

 

Prosecutions: 11 in 2010
Convictions: 4 in 2010

ENFORCEMENT AND IMPLEMENTATION ISSUES AND COMMENTS:

Irish authorities estimate that up to 80% of STRs involve funds derived from domestic tax violations and social welfare fraud.

In 2011, the largest known asset seizures, valued at approximately €500,000 (approximately $660,000), were seized in police raids on a suspected money laundering operation in Ireland. The case is believed to be related to money laundering by a European-based narcotics trafficking organization.

Customs authorities continue to intercept bulk cash from narcotics trafficking being smuggled out of Ireland. The largest interception was in 2010 when a suitcase belonging to an Irish drug trafficker containing 676,000 euros (approximately $895,000) in used bank notes was seized at Dublin International Airport.

On November 9, 2011, Ireland became a party to the UN Convention against Corruption.

The Government of Ireland should establish mechanisms for sharing information with other jurisdictions, outside of the Egmont procedures, and providing assistance in transnational criminal investigations.