Small firms group criticises EU money laundering directive

AN expert body is to determine which businesses will have to comply with strict new European Union money laundering requirements.

A steering committee comprising gardaí; the Department of Finance; the Department of Justice and the Irish Financial Services Authority is to meet to list the designated businesses. The group will begin the process once the Department of Finance publishes regulations on the implementation of the Third Anti-Money Laundering Directive.

The directive, which builds on two previous directives, was agreed by European Union finance ministers on Tuesday. The directive extends money laundering requirements beyond financial institutions and professions, such as accountants and solicitors.

All businesses dealing in single or linked cash transactions in excess of €15,000 will have to report any suspicious transactions to the authorities. Businesses likely to be affected include builders; tradesmen; garages; car dealers; travel agents; department stores; audio-visual stores; kitchen retail outlets; jewellers; bookmakers and hotels.

“It’s fairly all-encompassing now as to who is affected,” said one garda source.

He said the committee would consult widely with professional bodies and affected businesses. The directive has been strongly criticised by the Small Firms Association (SFA), but has been welcomed by the Irish Small and Medium Enterprises Association (ISME).

ISME chief executive Mark Fielding said the association welcomed any efforts to combat crime.

He said the directive would have “very little effect” on his members as very few were involved in cash payments anywhere near the threshold.

Pat Delaney of the Small Firms Association said his members would be severely affected as many people still paid for expensive consumer goods, home improvements, cars and holidays by cash.