Anti Money Laundering (AML) in Ireland
Money laundering in Ireland is a persistent problem. Although significant steps have been taken to develop AML legislation, Ireland is still at risk due to narcotics trafficking, fraud, and tax offenses. Ireland criminalized money laundering relating to narcotics trafficking and other offenses in 1994. In 2003, the current law regarding reporting requirements of the current AML law was amended to include lawyers, accountants, auditors, real estate agents, auctioneers, and dealers in high-value goods, thus aligning its laws with the Council Directive 2001/97/EC on prevention of the use of the financial system for money laundering (2nd European Union Money Laundering Directive).
The Irish Financial Services Regulatory Authority supervises the financial institutions for compliance with money laundering procedures. The Central Bank reports to the Irish police regarding institutions under its supervision. The reports cover failure to establish identity of customers, failure to retain evidence of identification, and failure to adopt measures to prevent and detect the commission of a money laundering offense. In addition to Suspicious Transaction Reports (STRs), there are customs reporting requirements for anyone transporting more than 12,700 euro.
The Criminal Justice (Terrorism Offenses) Bill 2002 brought Ireland in line with United Nations (UN) Conventions and European Union (EU) Framework decisions on combating terrorism. It enabled Ireland to ratify and accede to the remaining four UN conventions on terrorism and significantly strengthened the government’s ability to seize assets and prosecute those suspected of supporting terrorism.
AML Training in Ireland
Ireland’s Criminal Justice Act requires all financial institutions in the country to apply a comprehensive AML training program that teaches employees how to recognize operations which may be related to money laundering and instructs them on how to proceed in such cases.
The Economy of Ireland
The economy of Ireland, driven by industry and exports, is one of the leading economies in the EU and an important economy in the world as well. Agriculture, once the most important sector, is now dwarfed by industry and services. Although the exports sector, dominated by foreign multinationals, remains a key component of Ireland's economy, construction has most recently fueled economic growth along with strong consumer spending and business investment. Per capita GDP is 40% above that of the four big European economies and the second highest in the EU behind Luxembourg.
Over the past decade, the Irish government has implemented a series of national economic programs designed to curb price and wage inflation, reduce government spending, increase labor force skills, and promote foreign investment. Ireland joined in circulating the euro on January 1, 2002 along with 11 other EU nations.
The Irish Stock Exchange is a key element of the financial infrastructure of Ireland. Its roots stretch back to 1793 when the Exchange first opened for trading in Dublin. As a regulated Stock Exchange, the Exchange complies with the requirements of EU Directives, including the Prospectus Directive and Markets in Financial Instruments Directive, in relation to securities listed and admitted to trading on the Main Market of the Exchange.
Banking in Ireland
The Central Bank & Financial Services Authority of Ireland is the Central Bank of Ireland. The Central Bank became part of the Economic and Monetary Union in Europe in 1999. The national central banks of the euro area, together with the European Central Bank, form the Eurosystem. The primary objective of the Eurosystem is to maintain price stability in the euro area.
Domestically, however, the Central Bank is responsible for: contributing to the maintenance of a stable financial system in Ireland; overseeing the domestic payment and settlement systems; ensuring the provision and integrity of banknotes and coins; managing the investments assets on behalf of the State; and acting as agent for and banker to the Government.
As Ireland uses the Euro, the Central Bank of Ireland does not issue the country’s own currency. All coins and banknotes are issued by the European Central Bank.
Irish Currency
The currency in Ireland is the Euro, which serves as the currency of the 15 members of the European Central Bank. The states that have adopted the Euro as currency make up the Eurozone. These countries are Austria, Belgium, Cyprus, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. The Euro is the single currency for more than 320 million Europeans.
Until World War I, Sweden, Denmark and Norway utilized the krona as their shared currency. When the countries each broke off into their own respective currencies, Sweden chose to keep the name krona.
The Euro was first phased into the global economy in 1999. In the beginning, participating countries had to combat the use of both Euros and former national currencies. Beginning in 2002, national currencies were withdrawn.
The Euro comes in both banknotes and coins. Banknotes are available in 5, 10, 20, 50, 100, 200 and 500 denominations. Coins are available in 1, 2, 5, 10, 20, 50 cent pieces, and 1 and 2 Euro coins.
Other Key Statistics of Ireland
Time Zone: UTC 0 (5 hours ahead of Washington, DC during Standard Time).
Daylight Savings Time: +1hr, begins last Sunday in March; ends last Sunday in October.
Location: Western Europe, occupying five-sixths of the island of Ireland in the North Atlantic Ocean, west of Great Britain.
Population: 4,156,119 (July 2008 est.).
Labor Force: Approximately 6% work in agriculture, 27% in industry and 67% in services industries. The unemployment rate is 4.6%.
Languages Spoken: English (official) is the language generally used, Irish (Gaelic or Gaeilge) (official) spoken mainly in areas located along the western seaboard.
Trade Organizations: Ireland is a member of the World Trade Organization (WTO) and the United Nations (UN).
