New EU body to tackle money laundering
Shortcomings in Ireland’s money laundering machinery have been highlighted by international bodies and domestic reviews over the years.
The Department of Justice has given an initial broad welcome to ambitious European Commission plans to step up the fight against money laundering and terrorist financing.
The Irish banking industry has also welcomed the proposals, which include the establishment of a new EU Anti-Money Laundering (AML) Authority.
This body would have legal powers to supervise national authorities, including in Ireland.
The proposals also include harmonising regulations across the union and improving investigations into what are often complex crimes, crossing multiple jurisdictions.
Launching the measures, Mairead McGuinness, EU Commissioner for Financial Services, Financial Stability and Capital Markets Union said: “Money laundering poses a clear and present threat to citizens, democratic institutions, and the financial system.”
She said the loopholes criminals can exploit need to be closed and that the package of measures announced “significantly ramps up our efforts to stop dirty money being washed through the financial system”.
She added: “We are increasing coordination and cooperation between authorities in member states, and creating a new EU AML authority. These measures will help us protect the integrity of the financial system and the single market.”
Shortcomings in Ireland’s money laundering machinery have been highlighted by international bodies and domestic reviews over the years, most recently by Transparency International Ireland, the Government-appointed Hamilton review and a UN review.
Responding, the Department of Justice said officials were currently examining the proposals.
“Overall an enhancement of the EU anti-money laundering and terrorist financing framework is welcome and should serve to assist in combatting organised crime in this area,” the department said in a statement.
“One of the proposals includes the establishment of an EU supervisory body. Negotiations will now commence at EU level on how the body will operate which will include how it will interact with financial intelligence units and national supervisory authorities.”
The department said it was understood the “intended initial focus” of the new body in the short term would be on the financial sector, which is supervised by the Central Bank.
It said it would also focus on cases involving a cross-border dimension.
“The focus on cross-border cases is welcome as such cases tend to be complex and resource intensive,” the department said.
The Banking & Payments Federation Ireland (BPFI) said, it particularly welcomed the new regulation which would be directly applicable throughout the EU.
Keith Gross, Head of BPFI’s financial crime and security, said “regulatory harmonisation and enhanced coordination” of financial intelligence units would would create a concerted effort in dealing with money laundering risks.
Mr Gross added: “Proposals within the package to set-up a new EU AML authority will be critical. However for the new authority to bring value, it must facilitate information exchange and help detect cross-border criminal activities.
“It will also be crucial that the agency avoid overlaps and duplications with national competent authorities and supervisors.”
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