EU launches infringement proceedings over Irish anti-money laundering laws

If, after two months, the EU Commission continues to find that Ireland is not in compliance, the matter can be referred to the EU Court of Justice where penalties can be imposed

The EU Commission has notified three member States over failing to properly transpose an anti-money laundering directive into their domestic legislation. 

The European Commission has opened an infringement procedure against Ireland and two other countries over failures to properly transpose anti-money laundering directives into law.

All the implicated countries notified the Commission that they had completely transposed the amended directive. However, the Commission has since identified several instances of non-conformity.

In the summer of 2018, the fifth amendment to the EU’s Anti-Money Laundering Directive came into effect. It sought to enhance the powers of EU Financial Intelligence Units, enhance transparency by setting up publicly available registers for companies, trusts and other legal arrangements, as well as improve co-operation between anti-money laundering supervisors.

The amendment was initially transposed into Irish law in 2022, however, the EU Commission has now raised concerns about how it was done.

In a letter of formal notice to the Irish Government, the EU Commission said Ireland’s implementation of the system fails to guarantee the adequacy and completeness of the information held in the beneficial ownership register of trusts — a database where owners of a company or another legal entity are registered — as well as regards the accessibility of this information.

The Commission also sent notice letters to France and Latvia for failing to properly transpose the directive.

Ireland, France and Latvia have been given two months to respond and address the shortcomings raised by the Commission. Should the Commission not receive a satisfactory response, it may decide to issue a reasoned opinion.

If the EU Commission continues to find that Ireland is not in compliance, the matter can be referred to the EU Court of Justice where penalties can be imposed.