Department of Justice officials to have power to issue fines for minor money laundering

'As an alternative under the new approach, an administrative fine could be issued in lieu of a criminal prosecution,' one official said.

Department of Justice officials are to be given the power to issue fines for breaches of money laundering laws, under Government plans.

This will provide another, less serious, option for more minor money laundering offences, with the current legal environment only allowing for a criminal prosecution.

The move follows a request from Justice Minister Helen McEntee to expand the regulatory enforcement powers of the department’s Anti-Money Laundering Compliance Unit (AMCLU).

The new powers will enable officials in the unit to implement obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

A new heads of bill is to be drafted to give a legislative basis to the new powers.

It follows the report of a working group tasked with examining the issue, which recommended granting the unit the legal right to issue fines for administrative offences relating to the 2010 act.

Department officials say it will allow for “more proportionate responses” in certain instances.

For example, there is an obligation for specified businesses to have a documented risk assessment regarding potential exposure of the business to money laundering and terrorist financing.

The only sanction currently available to the AMCLU for breach of this requirement is for a criminal prosecution to be pursued.

“As an alternative under the new approach, an administrative fine could be issued in lieu of a criminal prosecution,” one official said.

The department said this approach was in line with the view of the European Commission.

“The minister and the Government have decided that the AMLCU should be able to offer administrative fines as an alternative where there is a clear breach of the law, whilst also ensuring that criminal prosecutions can still be made,” an official said.

The new system will give the person affected the right to choose between the fine or be prosecuted for a criminal offence through the courts and potentially receive a criminal conviction.

Officials said this was similar to fixed charge penalty notices being issued for road traffic offences, where a criminal offence exists.

The level of administrative fines that can be issued by the AMLCU, and the strict liability offences to which those fines will apply, are to be considered further as part of the drafting of the legislation.

The working group recommended that the ceiling be €5,000, which is the upper limit for a summary criminal offence under the act.

The group also discussed that the AMLCU supervises a broad range of non-financial businesses.

The department believes that since the turnover of some businesses is quite low, the imposition of a modest fine for breaches of the act would be “proportionate, dissuasive and effective”.

Businesses designated under the act include: a credit institution; a financial institution; an auditor, external accountant or tax adviser; independent legal professional; a trust or company service provider; a property service provider; a casino; a person trading in goods, but only in respect of transactions involving cash payments of a total of at least €10,000 (in one transaction or in a series of linked transactions); a virtual asset service provider; intermediary in the art trade.