Government seeks to tighten financial controls around cryptocurrency and gambling

One Government source said the new plan would protect individuals from scams, while targeting criminal networks and those involved in terrorist financing

Gambling operators will also be required to introduce a new ‘closed loop’ system, where any winnings must be returned to the same account as deposits, as part of efforts to make money laundering more difficult. File picture Denis Minihane

The Government is set to tighten up regulations for casinos and cryptocurrency investment funds, as part of new plans to tackle financial crime and money laundering.

The proposals to harden Ireland’s financial crime controls include new powers for regulators to impose fines on those breaking money laundering rules, alongside additional transparency requirements for companies.

Stronger rules will be introduced for casino-style gambling venues, and there will be additional anti-money laundering oversight.

This includes introducing a requirement for private members’ gambling clubs to receive a licence and be supervised, like other gambling businesses.

Gambling operators will also be required to introduce a new ‘closed loop’ system, where any winnings must be returned to the same account as deposits, as part of efforts to make money laundering more difficult.

Proposals from the Government also recommend the introduction of new standards for cryptocurrency-related funds. This is to ensure money is coming from “legitimate sources”.

It also says new powers will be provided to anti-money laundering supervisors which will permit them to fine agencies and companies which break rules.

Plans include improving the level of data sharing on suspicious financial activity between State agencies, as part of efforts to catch criminals quicker.

The plan also includes a commitment to establish a national taskforce for coordinating efforts against terrorist financing and sanctions evasion.

The 30 recommendations stemming from the plan are set to be launched by Tánaiste Simon Harris and Justice Minister Jim O’Callaghan on Thursday.

Mr Harris is expected to say financial crime is not "victimless” and behind each fraud, scam, and money laundering operation are “real victims”.

He will add the Government cannot stand still while criminals exploit new technology and increasingly sophisticated methodology.

One Government source said the new plan would protect individuals from scams, while also looking to target criminal networks and those involved in terrorist financing.

Money laundering investigations

Other recommendations include allowing money laundering investigations run concurrently with tax and excise investigations, and examine existing restrictions which allow ownership of companies to remain hidden.

The report also recommends ensuring that banks and financial firms keep apace with technological advancements, citing the advent of AI and cryptocurrency, to prevent criminals taking advantage of these tools.

The plan is coming alongside an updated National Risk Assessment, which found that there is an overall moderate threat of money laundering in Ireland, while there is a low threat of terrorist financing in the State.

Mr O’Callaghan is expected to say the plan will ensure there is strong cooperation across Government to deal with money laundering and financial crime, ensuring that Ireland’s response remains fit for purpose.

At present, one small garda unit is targeting money laundering networks across the country, with hundreds of prosecutions being brought over the last three years.

• Tadgh McNally is Political Reporter.