Criminal Justice (Money Laundering and Terrorist Financing) Act 2010

• (2) For the purposes of and without prejudice to the generality of subsection (1), any individual who is the beneficial owner of a body corporate that benefits from or exercises control over the property of the entity or arrangement is taken to benefit from or exercise control over the property of the entity or arrangement.

• (3) In this Part, “beneficial owner”, in relation to a case other than a case to which section 26, 27, 28 or 29, or subsection (1) of this section, applies, means any individual who ultimately owns or controls a customer or on whose behalf a transaction is conducted.

• (4) F46[…]

F49[Chapter 1A Risk assessment by designated persons]

30A. F50[Business risk assessment by designated persons

30A.— (1) A designated person shall carry out an assessment (in this Act referred to as a "business risk assessment") to identify and assess the risks of money laundering and terrorist financing involved in carrying on the designated person’s business activities taking into account at least the following risk factors:

• (a) the type of customer that the designated person has;

• (b) the products and services that the designated person provides;

• (c) the countries or geographical areas in which the designated person operates;

• (d) the type of transactions that the designated person carries out;

• (e) the delivery channels that the designated person uses;

• (f) other prescribed additional risk factors.

• (2) A designated person carrying out a business risk assessment shall have regard to the following:

• (a) any information in the national risk assessment which is of relevance to all designated persons or a particular class of designated persons of which the designated person is a member;

• (b) any guidance on risk issued by the competent authority for the designated person;

• (c) where the designated person is a credit institution or financial institution, any guidelines addressed to credit institutions and financial institutions issued by the European Banking Authority, the European Securities and Markets Authority or the European Insurance and Occupational Pensions Authority in accordance with the Fourth Money Laundering Directive.

• (3) A business risk assessment shall be documented unless a competent authority for a designated person decides under Article 8 of the Fourth Money Laundering Directive that an individual documented risk assessment is not required and notifies the designated person.

• (4) A designated person shall keep the business risk assessment, and any related documents, up to date in accordance with its internal policies, controls and procedures adopted in accordance with section 54.

• (5) A business risk assessment shall be approved by senior management.

• (6) A designated person shall make records of a business risk assessment available, on request, to the competent authority for that designated person.

• (7) The Minister may prescribe additional risk factors to be taken into account in a risk assessment under subsection (1) only where he or she is satisfied that it is appropriate to consider such matters in order to accurately identify and assess the risks of money laundering or terrorist financing.

• (8) A designated person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment to a fine or imprisonment not exceeding 5 years (or both).]

30B. F51[Application of risk assessment in applying customer due diligence

30B.— (1) For the purposes of determining the extent of measures to be taken under subsections (2) and (2A) of section 33 and subsections (1) and (3) of section 35 a designated person shall identify and assess the risk of money laundering and terrorist financing in relation to the customer or transaction concerned, having regard to—

• (a) the relevant business risk assessment,

• (b) the matters specified in section 30A(2),

• (c) any relevant risk variables, including at least the following:

• (i) the purpose of an account or relationship;

• (ii) the level of assets to be deposited by a customer or the size of transactions undertaken;

• (iii) the regularity of transactions or duration of the business relationship;

• (iv) any additional prescribed risk variable,

• (d) the presence of any factor specified in Schedule 3 or prescribed under section 34A suggesting potentially lower risk,

• (e) the presence of any factor specified in Schedule 4, and

• (f) any additional prescribed factor suggesting potentially higher risk.

• (2) A determination by a designated person under subsection (1) shall be documented where the competent authority for the designated person, having regard to the size and nature of the designated person and the need to accurately identify and assess the risks of money laundering or terrorist financing, so directs.

• (3) For the purposes of subsection (2), a State competent authority may direct a class of designated persons for whom it is the competent authority to document a determination in writing.

• (4) The Minister may prescribe additional risk variables to which regard is to be had under subsection (1)(c)(iv) only where he or she is satisfied that it is appropriate to consider such matters in order to accurately identify and assess the risks of money laundering or terrorist financing.

• (5) A designated person who fails to document a determination in accordance with a direction under subsection (2) commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment to a fine or imprisonment not exceeding 5 years (or both).]

Chapter 2 Designation of places other than Member States — procedures for detecting money laundering or terrorist financing

31. Designation of places imposing requirements equivalent to Third Money Laundering Directive.

31.— F52[…]

32. Designation of places having inadequate procedures for detection of money laundering or terrorist financing.

32.— F53[…]

Chapter 3 Customer Due Diligence

33. Identification and verification of customers and beneficial owners.

33.— (1) A designated person shall apply the measures specified in F54[subsection (2)], in relation to a customer of the designated person—

• (a) prior to establishing a business relationship with the customer,

• (b) prior to carrying out an occasional transaction with, for or on behalf of the customer or assisting the customer to carry out an occasional transaction,

• F55[(c) prior to carrying out any service for the customer, if, having regard to the circumstances, including—

• (i) the customer, or the type of customer, concerned,

• (ii) the type of any business relationship which the person has with the customer,

• (iii) the type of service or of any transaction or product in respect of which the service is sought,

• (iv) the purpose (or the customer’s explanation of the purpose) of the service or of any transaction or product in respect of which the service is sought,

• (v) the value of any transaction or product in respect of which the service is sought,

• (vi) the source (or the customer’s explanation of the source) of funds for any such transaction or product,

the person has reasonable grounds to suspect that the customer is involved in, or the service, transaction or product sought by the customer is for the purpose of, money laundering or terrorist financing, or]

or

• (d) prior to carrying out any service for the customer if—

• (i) the person has reasonable grounds to doubt the veracity or adequacy of documents (whether or not in electronic form) or information that the person has previously obtained for the purpose of verifying the identity of the customer, whether obtained under this section or section 32 of the Criminal Justice Act 1994 (“the 1994 Act”) prior to its repeal by this Act or under any administrative arrangements that the person may have applied before section 32 of the 1994 Act operated in relation to the person, and

• (ii) the person has not obtained any other documents or information that the person has reasonable grounds to believe can be relied upon to confirm the identity of the F54[customer,]

F56[and

• (e) at any time, including a situation where the relevant circumstances of a customer have changed, where the risk of money laundering and terrorist financing warrants their F57[application, or]]

• F58[(f) at any time where the designated person is obliged by virtue of any enactment or rule of law, including the European Union (Administrative Cooperation in the Field of Taxation) Regulations 2012 (S.I. No. 549 of 2012), to contact a customer for the purposes of reviewing any relevant information relating to the beneficial owner connected with the customer.]

• (2) The measures that shall be applied F56[, in accordance with section 30B,] by a designated person under subsection (1) are as follows:

• (a) identifying the customer, and verifying the customer’s identity on the basis of documents (whether or not in electronic form), or information, that the designated person has reasonable grounds to believe can be relied upon to confirm the identity of the customer, including—

• (i) documents from a government source (whether or not a State government source), F59[…]

• F58[(ia) information from relevant trust services as specified in the Electronic Identification Regulation, or]

• (ii) any prescribed class of documents, or any prescribed combination of classes of documents;

• (b) identifying any beneficial owner connected with the customer or service concerned, and taking measures reasonably warranted by the risk of money laundering or terrorist financing—

• (i) to verify the beneficial owner’s identity to the extent necessary to ensure that the person has reasonable grounds to be satisfied that the person knows who the beneficial owner is, F59[…]

• (ii) in the case of a legal entity or legal arrangement of a kind referred to in section 26, 27, 28 or 30, to understand the ownership and control structure of the entity or arrangement F57[concerned, and]

• F58[(iii) where the beneficial owner is the senior managing official referred to in Article 3(6)(a)(ii) of the Fourth Money Laundering Directive, a designated person shall take the necessary measures to verify the identity of that person and shall keep records of the actions taken to verify the person’s identity including any difficulties encountered in the verification process.]

• F56[(2A) When applying the measures specified in subsection (2), a designated person shall verify that any person purporting to act on behalf of the customer is so authorised and identify and verify the identity of that person in accordance with subsection (2).]

• (3) Nothing in subsection (2)(a)(i) or (ii) limits the kinds of documents or information that a designated person may have reasonable grounds to believe can be relied upon to confirm the identity of a customer.

• (4) F60[…]

• (5) Notwithstanding subsection (1)(a), a designated person may verify the identity of a customer or beneficial owner, in accordance with F54[subsection (2)], during the establishment of a business relationship with the customer if the designated person has reasonable grounds to believe that—

• (a) verifying the identity of the customer or beneficial owner (as the case may be) prior to the establishment of the relationship would interrupt the normal conduct of business, and

• (b) there is no real risk that the customer is involved in, or the service sought by the customer is for the purpose of, money laundering or terrorist financing,

but the designated person shall take reasonable steps to verify the identity of the customer or beneficial owner, in accordance with F54[subsection (2)], as soon as practicable.

• (6) Notwithstanding subsection (1)(a), F54[a credit institution or financial institution may allow an account, including an account that permits transactions in transferable securities, to be opened with it] by a customer before verifying the identity of the customer or a beneficial owner, in accordance with F54[subsection (2)], so long as the institution ensures that transactions in connection with the account are not carried out by or on behalf of the customer or beneficial owner before carrying out that verification.

• F61[(7) In addition to the measures required in relation to a customer and a beneficial owner under this section, credit institutions and financial institutions shall apply the measures specified in subsections (7A) to (7C) to the beneficiaries of life assurance and other investment-related assurance policies.

• (7A) As soon as the beneficiaries of life assurance and other investment-related assurance policies are identified or designated, a credit institution or financial institution shall—

• (a) take the names of beneficiaries that are identified as specifically named persons or legal arrangements, and

• (b) in the case of beneficiaries designated by characteristics, class or other means, obtain sufficient information to satisfy the institution that it will be able to establish the identity of the beneficiary at the time of the payout.

• (7B) A credit institution or financial institution shall verify the identity of a beneficiary referred to in paragraph (a) or (b) of subsection (7A) at the time of the payout in accordance with subsection (2).

• (7C) In the case of assignment, in whole or in part, of a policy of life assurance or other investment-related assurance to a third party, a credit institution or financial institution that is aware of the assignment shall identify the beneficial owner at the time of the assignment to the natural or legal person, or legal arrangement, receiving for his or her, or its, own benefit the value of the policy assigned.

• (7D) In addition to the measures required in relation to a customer and a beneficial owner, in the case of beneficiaries of trusts or of similar legal arrangements that are designated by particular characteristics or class, a designated person shall obtain sufficient information concerning the beneficiary to satisfy the designated person that it will be able to establish the identity of the beneficiary at the time of the payout or at the time of the exercise by the beneficiary of its vested rights.]

• (8) F62[Subject to subsection (8A), a designated person] who is unable to apply the measures specified in F62[subsection (2) or (4)] in relation to a customer, as a result of any failure on the part of the customer to provide the designated person with documents or information required under this section—

• (a) shall not provide the service or carry out the transaction sought by that customer for so long as the failure remains unrectified, and

• (b) shall discontinue the business relationship (if any) with the customer.

• F63[(8A) Nothing in subsection (8) or section 35(2) shall operate to prevent a relevant independent legal professional or relevant professional adviser—

• (a) ascertaining the legal position of a person, or

• (b) performing the task of defending or representing a person in, or in relation to, civil or criminal proceedings, including providing advice on instituting or avoiding such proceedings.]

• (9) F62[A designated person] who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).

• (10) F60[…]

• (11) The Minister may prescribe a class of documents, or a combination of classes of documents, for the purposes of subsection (2)(a)(ii), only if the Minister is satisfied that the class or combination of documents would be adequate to verify the identity of customers of designated persons.

• (12) For the purposes of subsection (2)(a)(ii), the Minister may prescribe different classes of documents, or combinations of classes of documents, for different kinds of designated persons, customers, transactions, services or risks of money laundering or terrorist financing.

33A. F64[Electronic money derogation

33A.— (1) Subject to section 33(1)(c) and (d) and subsection (2), a designated person is not required to apply the measures specified in subsection (2) or (2A) of section 33, or section 35, with respect to electronic money if—

• (a) the payment instrument concerned—

• (i) is not reloadable, or

• (ii) cannot be used outside of the State and has a maximum monthly payment transactions limit not exceeding F65[€150],

• F65[(b) the monetary value that may be stored electronically on the payment instrument concerned does not exceed €150,]

• (c) the payment instrument concerned is used exclusively to purchase goods and services,

• (d) the payment instrument concerned cannot be funded with anonymous electronic money,

• (e) the issuer of the payment instrument concerned carries out sufficient monitoring of the transactions or business relationship concerned to enable the detection of unusual or suspicious transactions, F66[…]

• (f) the transaction concerned is not a redemption in cash or cash withdrawal of the monetary value of the electronic money of an amount exceeding F65[€50, and]

• F67[(g) the transaction concerned is not a remote payment transaction (within the meaning of Article 4 of Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 20153 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No. 1093/2010, and repealing Directive 2007/64/EC) of an amount exceeding €50.]

• (2) A designated person shall not apply the exemption provided for in subsection (1) if—

• (a) the customer concerned is established, or resident in, a high-risk third country, or

• (b) the designated person is required to apply measures, in relation to the customer or beneficial owner (if any) concerned, under section 37.]

• F67[(3) A credit institution or financial institution acting as an acquirer shall not accept a payment carried out with an anonymous prepaid card issued in a state other than a Member State unless the payment instrument concerned complies with the requirements of subsections (1) and (2).

• (4) A person who fails to comply with subsection (3) commits an offence and is liable—

• (i) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months, or both, or

• (ii) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years, or both.]

34. Exemptions from section 33.

34.— F68[…]

34A. F69[Simplified customer due diligence

34A.— (1) Subject to section 33(1)(c) and (d), a designated person may take the measures specified in sections 33(2) and 35 in such manner, to such extent and at such times as is reasonably warranted by the lower risk of money laundering or terrorist financing in relation to a business relationship or transaction where the designated person—

• (a) identifies in the relevant business risk assessment, an area of lower risk into which the relationship or transaction falls, and

• (b) considers that the relationship or transaction presents a lower degree of risk.

• (2) For the purposes of identifying an area of lower risk a designated person shall have regard to—

• (a) the matters specified in section 30A(2),

• (b) the presence of any factor specified in Schedule 3, and

• (c) any additional prescribed factor suggesting potentially lower risk.

• (3) Where a designated person applies simplified due diligence measures in accordance with subsection (1) it shall—

• (a) keep a record of the reasons for its determination and the evidence on which it was based, and

• (b) carry out sufficient monitoring of the transactions and business relationships to enable the designated person to detect unusual or suspicious transactions.

• (4) The Minister may prescribe other factors, additional to those specified in Schedule 3, to which a designated person is to have regard under subsection (2) only if he or she is satisfied that the presence of those factors suggests a potentially lower risk of money laundering or terrorist financing.

• (5) For the purposes of subsection (1), a business relationship or transaction may be considered to present a lower degree of risk if a reasonable person having regard to the matters specified in paragraphs (a) to (f) of section 30B(1) would determine that the relationship or transaction presents a lower degree of risk of money laundering or terrorist financing.]

35. Special measures applying to business relationships.

35.— (1) A designated person shall obtain information reasonably warranted by the risk of money laundering or terrorist financing on the purpose and intended nature of a business relationship with a customer prior to the establishment of the relationship.

• (2) F70[Subject to section 33(8A), a designated person] who is unable to obtain such information, as a result of any failure on the part of the customer, shall not provide the service sought by the customer for so long as the failure continues.

• F70[(3) A designated person shall monitor any business relationship that it has with a customer to the extent reasonably warranted by the risk of money laundering or terrorist financing.]

• F71[(3A) Prior to the establishment of a business relationship with a customer to which the European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2021 (S.I. No. 194 of 2021) apply, a designated person shall ascertain that information concerning the beneficial ownership of the customer is entered in the relevant trust’s beneficial ownership register or in the Central Register of Beneficial Ownership of trusts, as the case may be.]

• F72[(3B) Notwithstanding subsection (3A), a designated person that is a credit institution or a financial institution may allow an account to be opened with it by a customer before ascertaining that the information concerning the beneficial ownership of the customer is entered in the express trust (beneficial ownership) register in accordance with subsection (3A) so long as the designated person ensures that transactions in connection with the account are not carried out by or on behalf of the customer or beneficial owner before ascertaining that information.

• (3C) Prior to the establishment of a business relationship with a customer to which the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2019 ( S.I. No. 110 of 2019 ) (modified by the European Union (Modifications of Statutory Instrument No. 110 of 2019) (Registration of Beneficial Ownership of Certain Financial Vehicles Regulations 2020) ( S.I. No. 233 of 2020 ) apply, a designated person shall ascertain that information concerning the beneficial ownership of the customer is entered in the Central Register of Beneficial Ownership of Companies and Industrial Provident Societies or, as the case may be, the Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts.

• (3D) Notwithstanding subsection (3C), a designated person that is a credit institution or a financial institution may allow an account to be opened with it by a customer before ascertaining that information concerning the beneficial ownership of the customer is entered in the Central Register of Beneficial Ownership of Companies and Industrial Provident Societies or, as the case may be, Central Register of Beneficial Ownership of Irish Collective Asset-management Vehicles, Credit Unions and Unit Trusts in accordance with subsection (3C) so long as the designated person ensures that transactions in connection with the account are not carried out by or on behalf of the customer or beneficial owner before ascertaining that information.]

• (4) Except as provided by section 36, a designated person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).

36. Exemption from section 35(1).

36.— F73[…]

36A. F74[Examination of background and purpose of certain transactions

36A.— F75[(1) A designated person shall, as far as possible, in accordance with policies and procedures adopted in accordance with section 54, examine the background and purpose of all transactions that—

• (a) are complex,

• (b) are unusually large,

• (c) are conducted in an unusual pattern, or

• (d) do not have an apparent economic or lawful purpose.]

• (2) A designated person shall increase the degree and nature of monitoring of a business relationship in order to determine whether transactions referred to in subsection (1) appear suspicious.

• (3) A designated person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]

37. Enhanced customer due diligence — politically exposed persons.

37.— F76[(1) A designated person shall take steps to determine whether or not—

• (a) a customer, or a beneficial owner connected with the customer or service concerned, or

• (b) a beneficiary of a life assurance policy or other investment-related assurance policy, or a beneficial owner of the beneficiary,

is a politically exposed person or an immediate family member, or a close associate, of a politically exposed person.]

• F76[(2) The designated person shall take the steps referred to in subsection (1)—

• (a) in relation to a person referred to subsection (1)(a), prior to—

• (i) establishing a business relationship with the customer, or

• (ii) carrying out an occasional transaction with, for or on behalf of the customer or assisting the customer to carry out an occasional transaction,

and

• (b) in relation to a person mentioned in subsection (1)(b)—

• (i) prior to the payout of the policy, or

• (ii) at the time of the assignment, in whole or in part, of the policy.]

• (3) The steps to be taken are such steps as are reasonably warranted by the risk that the customer F77[, or beneficiary] or beneficial owner (as the case may be) is involved in money laundering or terrorist financing.

• F78[(4) If a designated person knows or has reasonable grounds to believe that a customer F79[…] is, or has become, a politically exposed person or an immediate family member or close associate of a politically exposed person, the designated person shall—

• (a) ensure that approval is obtained from senior management of the designated person before a business relationship is established or continued with the customer,

• (b) determine the source of wealth and of funds for the following transactions—

• (i) transactions the subject of any business relationship with the customer that are carried out with the customer or in respect of which a service is sought, or

• (ii) any occasional transaction that the designated person carries out with, for or on behalf of the customer or that the designated person assists the customer to carry out,

and

• F76[(c) in addition to measures to be applied in accordance with section 35(3), apply enhanced monitoring of the business relationship with the customer.]]

• F80[(4A) A designated person shall continue to apply the measures referred to in subsection (4) to a politically exposed person for as long as is reasonably required to take into account the continuing risk posed by that person and until such time as that person is deemed to pose no further risk specific to politically exposed persons.]

• (5) Notwithstanding subsections (2)(a) and (4)(a), a credit institution F77[or financial institution] may allow a bank account to be opened with it by a customer before taking the steps referred to in subsection (1) or seeking the approval referred to in subsection (4)(a), so long as the institution ensures that transactions in connection with the account are not carried out by or on behalf of the customer or any beneficial owner concerned before taking the steps or seeking the approval, as the case may be.

• (6) If a designated person knows or has reasonable grounds to believe that a beneficial owner F79[…] connected with a customer or with a service sought by a customer, F78[is, or has become, a politically exposed person] or an immediate family member or close associate of a politically exposed person, the designated person shall apply the measures specified in F78[subsection (4)(a), (b) and (c)] in relation to the customer concerned.

• F77[(6A) If a designated person knows or has reasonable grounds to believe that a beneficiary of a life assurance or other investment-related assurance policy, or a beneficial owner of the beneficiary concerned, is a politically exposed person, or an immediate family member or a close associate of a politically exposed person, and that, having regard to section 39, there is a higher risk of money laundering or terrorist financing, it shall—

• (a) inform senior management before payout of policy proceeds, and

• (b) conduct enhanced scrutiny of the business relationship with the policy holder.]

• (7) For the purposes of F76[subsections (4), (6) and (6A)], a designated person is deemed to know that another person is a politically exposed person or an immediate family member or close associate of a politically exposed person if, on the basis of—

• (a) information in the possession of the designated person (whether obtained under subsections (1) to (3) or otherwise),

• (b) in a case where the designated person has contravened subsection (1) or (2), information that would have been in the possession of the person if the person had complied with that provision, or

• (c) public knowledge,

there are reasonable grounds for concluding that the designated person so knows.

• (8) A designated person who is unable to apply the measures specified in subsection (1), (3), (4) or (6) in relation to a customer, as a result of any failure on the part of the customer to provide the designated person with documents or information—

• (a) shall discontinue the business relationship (if any) with the customer for so long as the failure continues, and

• (b) shall not provide the service or carry out the transaction sought by the customer for so long as the failure continues.

• (9) A person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).

• (10) In this section—

“close associate” of a politically exposed person includes any of the following persons:

• (a) any individual who has joint beneficial ownership of a legal entity or legal arrangement, or any other close business relations, with the politically exposed person;

• (b) any individual who has sole beneficial ownership of a legal entity or legal arrangement set up for the actual benefit of the politically exposed person;

“immediate family member” of a politically exposed person includes any of the following persons:

• (a) any spouse of the politically exposed person;

• (b) any person who is considered to be equivalent to a spouse of the politically exposed person under the national or other law of the place where the person or politically exposed person resides;

• (c) any child of the politically exposed person;

• (d) any spouse of a child of the politically exposed person;

• (e) any person considered to be equivalent to a spouse of a child of the politically exposed person under the national or other law of the place where the person or child resides;

• (f) any parent of the politically exposed person;

• (g) any other family member of the politically exposed person who is of a prescribed class;

“politically exposed person” means an individual who is, or has at any time in the preceding 12 months been, entrusted with a prominent public function, including F81[any of the following individuals] (but not including any middle ranking or more junior official):

• (a) a specified official;

• (b) a member of the administrative, management or supervisory body of a state-owned enterprise;

• F80[(c) any individual performing a prescribed function;]

“specified official” means any of the following officials (including any such officials in an institution of the European Communities or an international body):

• (a) a head of state, head of government, government minister or deputy or assistant government minister;

• (b) a member of a parliament F77[or of a similar legislative body];

• F77[(bb) a member of the governing body of a political party;]

• (c) a member of a supreme court, constitutional court or other high level judicial body whose decisions, other than in exceptional circumstances, are not subject to further appeal;

• (d) a member of a court of auditors or of the board of a central bank;

• F76[(e) an ambassador, chargé d’affairs or high-ranking officer in the armed forces;]

• F77[(f) a director, deputy director or member of the board of, or person performing the equivalent function in relation to, an international organisation.]

• (11) The Minister may prescribe a class of family member of a politically exposed person, for the purposes of paragraph (g) of the definition of “immediate family member” of a politically exposed person in subsection (10), only if the Minister is satisfied that it would be appropriate for the provisions of this section to be applied in relation to members of the class, having regard to any heightened risk, arising from their close family relationship with the politically exposed person, that such members may be involved in money laundering or terrorist financing.

• F80[(12) The Minister may, with the consent of the Minister for Finance, issue guidelines to the competent authorities in respect of functions in the State that may be considered to be prominent public functions and each competent authority shall have regard to any such guidelines.

• (13) The Minister may, where he or she believes it is necessary to do so, and with the consent of the Minister for Finance, issue guidelines to the competent authorities for the purpose of facilitating the consistent, effective and risk-based application of this section.]

38. Enhanced customer due diligence — correspondent banking relationships.

F82[38.— (1) A credit institution or financial institution ("the institution") shall not enter into a correspondent relationship F83[involving the execution of payments] with another credit institution or financial institution ("the respondent institution") F84[…] unless, prior to commencing the relationship, the institution—

• (a) has gathered sufficient information about the respondent institution to understand fully the nature of the business of the respondent institution,

• (b) is satisfied on reasonable grounds, based on publicly available information, that the reputation of the respondent institution, and the quality of supervision or monitoring of the operation of the respondent institution in the place, are sound,

• (c) is satisfied on reasonable grounds, having assessed the anti-money laundering and anti-terrorist financing controls applied by the respondent institution, that those controls are sound,

• (d) has ensured that approval has been obtained from the senior management of the institution,

• (e) has documented the responsibilities of each institution in applying anti-money laundering and anti-terrorist financing controls to customers in the conduct of the correspondent relationship and, in particular—

• (i) the responsibilities of the institution arising under this Part, and

• (ii) any responsibilities of the respondent institution arising under requirements equivalent to those specified in the Fourth Money Laundering Directive,

and

• (f) in the case of a proposal that customers of the respondent institution have direct access to a payable-through account held with the institution in the name of the respondent institution, is satisfied on reasonable grounds that the respondent institution—

• (i) has identified and verified the identity of those customers, and is able to provide to the institution, upon request, the documents (whether or not in electronic form) or information used by the institution to identify and verify the identity of those customers,

• (ii) has applied measures equivalent to the measure referred to in section 35(1) in relation to those customers, and

• (iii) is applying measures equivalent to the measure referred to in section 35(3) in relation to those customers.

• (2) A person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]

38A. F85[Enhanced customer due diligence - high-risk third countries

38A.— F86[(1) Subject to subsection (2), a designated person shall apply the following measures to manage and mitigate the risk of money laundering and terrorist financing additional to those specified in this chapter, when dealing with a customer established or residing in a high-risk third country:

• (a) obtaining additional information on the customer and on the beneficial owner;

• (b) obtaining additional information on the intended nature of the business relationship;

• (c) obtaining information on the source of funds and source of wealth of the customer and of the beneficial owner;

• (d) obtaining information on the reasons for the intended or performed transactions;

• (e) obtaining the approval of senior management for establishing or continuing the business relationship;

• (f) conducting enhanced monitoring of the business relationship by increasing the number and timing of controls applied and selecting patterns of transaction that need further examination.]

• (2) Subsection (1) shall not apply where—

• (a) the customer is a branch or majority-owned subsidiary of a designated person and is located in a high-risk third country,

• (b) the designated person referred to in paragraph (a) is established in a Member State, and

• (c) the branch or majority-owned subsidiary referred to in paragraph (a) is in compliance with the group-wide policies and procedures of the group of which it is a member adopted in accordance with Article 45 of the Fourth Money Laundering Directive.

• (3) In the circumstances specified in subsection (2), the designated person shall—

• (a) identify and assess the risk of money laundering or terrorist financing in relation to the business relationship or transaction concerned, having regard to section 30B, and

• (b) apply customer due diligence measures specified in this Chapter to the extent reasonably warranted by the risk of money laundering or terrorist financing.

• (4) A designated person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]

39. F87[Enhanced due diligence in cases of heightened risk

F88[39.— (1) Without prejudice to sections 37, 38 and 59, a designated person shall apply measures to manage and mitigate the risk of money laundering or terrorist financing, additional to those specified in this Chapter, to a business relationship or transaction that presents a higher degree of risk.

• (2) For the purposes of subsection (1) a business relationship or transaction shall be considered to present a higher degree of risk if a reasonable person having regard to the matters specified in paragraphs (a) to (f) of section 30B(1) would determine that the business relationship or transaction presents a higher risk of money laundering or terrorist financing.

• (3) The Minister may prescribe other factors, additional to those specified in Schedule 4, suggesting potentially higher risk only if he or she is satisfied that the presence of those factors suggests a potentially higher risk of money laundering or terrorist financing.

• (4) A designated person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]]

40. Reliance on other persons to carry out customer due diligence.

40.— (1) In this section, “relevant third party” means—

• (a) a person, carrying on business as a designated person in the State—

• (i) that is a credit institution,

• (ii) that is a financial institution (other than an undertaking that is a financial institution solely because the undertaking provides either foreign exchange services or payment services, or both),

• (iii) who is an external accountant or auditor and who is also a member of a designated accountancy body,

• (iv) who is a tax adviser, and who is also a solicitor or a member of a designated accountancy body or of the Irish Taxation Institute,

• (v) who is a relevant independent legal professional, or

• (vi) who is a trust or company service provider, and who is also a member of a designated accountancy body, a solicitor or authorised to carry on business by the F89[Central Bank of Ireland],

• (b) a person carrying on business in another Member State who is supervised or monitored for compliance with the requirements specified in F90[the Fourth Money Laundering Directive, in accordance with Section 2 of Chapter VI of that Directive] and is—

• (i) a credit institution authorised to operate as a credit institution under the laws of the Member State,

• (ii) a financial institution (other than an undertaking that is a financial institution solely because the undertaking provides either foreign exchange services or payment services, or both) and authorised to operate as a financial institution under the laws of the Member State, or

• (iii) an external accountant, auditor, tax adviser, legal professional or trust or company service provider subject to mandatory professional registration or mandatory professional supervision under the laws of the other Member State,

F91[…]

• (c) a person who carries on business in F90[a place (other than a Member State) which is not a high-risk third country], is supervised or monitored in the place for compliance with requirements equivalent to those specified in F90[the Fourth Money Laundering Directive], and is—

• (i) a credit institution authorised to operate as a credit institution under the laws of the place,

• (ii) a financial institution (other than an undertaking that is a financial institution solely because the undertaking provides either foreign exchange services or payment services, or both) authorised to operate as a financial institution under the laws of the place, or

• (iii) an external accountant, auditor, tax adviser, legal professional or trust or company service provider subject to mandatory professional registration or mandatory professional supervision under the laws of F90[the place, or]

• F92[(d) a person who carries on business in a high-risk third country, is a branch or majority-owned subsidiary of an obliged entity established in the Union, and fully complies with group-wide policies and procedures in accordance with Article 45 of the Fourth Money Laundering Directive and is—

• (i) a credit institution authorised to operate as a credit institution under the laws of the place,

• (ii) a financial institution (other than an undertaking that is a financial institution solely because the undertaking provides either foreign exchange services or payment services, or both) authorised to operate as a financial institution under the laws of the place, or

• (iii) an external accountant, auditor, tax adviser, legal professional or trust or company service provider subject to mandatory professional registration or mandatory professional supervision under the laws of the place.]

• F92[(1A) Without prejudice to the generality of paragraphs (b) and (c) of subsection (1), for the purposes of those paragraphs, a person is supervised or monitored for compliance with the requirements specified in the Fourth Money Laundering Directive, in accordance with Section 2 of Chapter VI, or requirements equivalent to those requirements, where—

• (a) the person and the designated person seeking to rely upon this section are part of the same group,

• (b) the group applies customer due diligence and record keeping measures and policies and procedures to prevent and detect the commission of money laundering and terrorist financing in accordance with the Fourth Money Laundering Directive or requirements equivalent to those specified in the Fourth Money Laundering Directive, and

• (c) the effective implementation of the requirements referred to in paragraph (b) is supervised at group level by a competent authority of the state where the parent company is incorporated.]

• (2) A reference in subsection (1)(b)(iii) and (c)(iii) to a legal professional is a reference to a person who, by way of business, provides legal or notarial services.

• (3) Subject to subsections (4) and (5), a designated person may rely on a relevant third party to apply, in relation to a customer of the designated person, any of the measures that the designated person is required to apply, in relation to the customer, under section 33 or 35(1).

• (4) A designated person may rely on a relevant third party to apply a measure under section 33 or 35(1) only if—

• (a) there is an arrangement between the designated person (or, in the case of a designated person who is an employee, the designated person’s employer) and the relevant third party under which it has been agreed that the designated person may rely on the relevant third party to apply any such measure, and

• (b) F90[the designated person is satisfied that the circumstances specified in paragraphs (a) to (c) of subsection (1A) exist, or] on the basis of the arrangement, that the relevant third party will forward to the designated person, as soon as practicable after a request from the designated person, any documents (whether or not in electronic form) or information relating to the customer F93[(including any information from relevant trust services as set out in the Electronic Identification Regulation)] that has been obtained by the relevant third party in applying the measure.

• (5) A designated person who relies on a relevant third party to apply a measure under section 33 or 35(1) remains liable, under section 33 or 35(1), for any failure to apply the measure.

• (6) A reference in this section to a relevant third party on whom a designated person may rely to apply a measure under section 33 or 35(1) does not include a reference to a person who applies the measure as an outsourcing service provider or an agent of the designated person.

• (7) Nothing in this section prevents a designated person applying a measure under section 33 or 35(1) by means of an outsourcing service provider or agent provided that the designated person remains liable for any failure to apply the measure.

F94[Chapter 3A Financial Intelligence Unit]

40A. F95[State Financial Intelligence Unit

40A.— (1) FIU Ireland may carry out, on behalf of the State, all the functions of an EU Financial Intelligence Unit (FIU) under the Fourth Money Laundering F96[Directive and Directive (EU) 2019/1153].

• (2) In this Part "FIU Ireland" means those members of the F97[members of garda staff (within the meaning of the Policing, Security and Community Safety Act 2024)] appointed by the Commissioner of the Garda Síochána.]

• F98[(3) In this Chapter the following have the same meaning as they have in Directive (EU) 2019/1153:

• (a) associate predicate offences;

• (b) financial analysis;

• (c) financial information;

• (d) serious criminal offences.]

40B. F99[Powers of FIU Ireland to receive and analyse information

40B.— (1) FIU Ireland shall be responsible for receiving and analysing suspicious transaction reports and other information relevant to money laundering or terrorist financing for the purpose of preventing, detecting and investigating possible money laundering or terrorist financing.

• (2) FIU Ireland’s analysis function shall consist of conducting—

• (a) an operational analysis which focuses on individual cases and specific targets or on appropriate selected information depending on the type and volume of the disclosures received and the expected use of the information after dissemination, and

• (b) a strategic analysis addressing money laundering and terrorist financing trends and patterns.]

40C. F100[Powers of certain members of FIU Ireland to obtain information

40C.— (1) A member of the Garda Síochána who is a member of FIU Ireland shall have access to the central registers established by the State for the purposes of paragraph (3) of Article 30 and paragraph (4) of Article 31 of the Fourth Money Laundering Directive.

• (2) A member of the Garda Síochána who is a member of FIU Ireland may, for the purposes of preventing, detecting, investigating or combating money laundering or terrorist financing request any person to provide FIU Ireland with information held by that person under any enactment giving effect to paragraph (1) of Article 30 or paragraph (1) of Article 31 of the Fourth Money Laundering Directive.

• (3) A member of the Garda Síochána who is a member of FIU Ireland may make a request in writing for any financial, administrative or law enforcement information that FIU Ireland requires in order to carry out its functions from any of the following:

• (a) a designated person;

• (b) a competent authority;

• (c) the Revenue Commissioners;

• (d) the Minister for Employment Affairs and Social Protection.

• (4) A designated person who, without reasonable excuse, fails to comply with a request for information under subsection (2) or (3) commits an offence and is liable—

• (a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment to a fine not exceeding €500,000 or imprisonment not exceeding 3 years (or both).]

40CA. F101[Requests by FIU Ireland to Article 3(2) authorities

40CA.— (1) An Article 3(2) authority shall reply, in a timely manner, to reasoned and necessary requests by a member of the Garda Síochána who is appointed to FIU Ireland, made on a case-by-case basis, for law enforcement information, where the information is necessary for the prevention, detection and combating of money laundering, associate predicate offences and terrorist financing.

• (2) In this section—

"law enforcement information" has the same meaning as it has in Directive (EU) 2019/1153;

"terrorist financing" has the same meaning as it has in Directive (EU) 2019/1153.]

40D. F102[Power of FIU Ireland to respond to requests for information from competent authorities

40D.— (1) FIU Ireland shall respond as soon as practicable to any request for information which is based on a concern relating to money laundering or terrorist financing that it receives from—

• (a) a competent authority,

• (b) the Revenue Commissioners, or

• (c) the Minister for Employment Affairs and Social Protection.

• (2) FIU Ireland may provide the results of its analyses and any additional relevant information to a person mentioned in subsection (1) where there are grounds to suspect money laundering or terrorist financing.

• (3) FIU Ireland shall be under no obligation to comply with the request for information where there are objective grounds for assuming that the provision of such information would have a negative impact on ongoing investigations or analyses, or, in exceptional circumstances, where disclosure of the information would be clearly disproportionate to the legitimate interests of a natural or legal person or irrelevant with regard to the purposes for which it has been requested.]

40DA. F103[Requests by Article 3(2) authorities to FIU Ireland

40DA.— (1) Subject to subsection (2), FIU Ireland shall cooperate with the Article 3(2) authorities and shall reply, in a timely manner, to reasoned and necessary requests by those authorities, made on a case-by-case basis, for financial information or financial analysis, where the requests are motivated by concerns relating to the prevention, detection, investigation or prosecution of serious criminal offences.

• (2) FIU Ireland shall not be obliged to comply with requests referred to in subsection (1) –

• (a) where, in the opinion of FIU Ireland, there are objective grounds for assuming that the provision of such information would have a negative impact on ongoing investigations or analyses, or

• (b) in exceptional circumstances, where, in the opinion of FIU Ireland, disclosure of the information would be clearly disproportionate to the legitimate interests of a natural or legal person, or irrelevant with regard to the purposes for which it has been requested.

• (3) The financial information or financial analysis obtained by an Article 3(2) authority as a result of a request referred to in subsection (1) may only be used for a purpose other than the purpose of the request where FIU Ireland has given its prior consent.

• (4) Where FIU Ireland refuses to accede to a request referred to in subsection (1), it shall provide an appropriate explanation for the refusal to the Article 3(2) authority concerned.

• (5) The Article 3(2) authorities may process the financial information and financial analysis received from FIU Ireland for the specific purposes of preventing, detecting, investigating or prosecuting serious criminal offences.]

40E. F104[Power of FIU Ireland to share information

40E.— (1) FIU Ireland may share information with other Financial Intelligence Units (FIUs), in accordance with subsection III of Section 3 of Chapter VI of F105[the Fourth Money Laundering Directive (as amended by the Fifth Money Laundering Directive)].

• (2) FIU Ireland may provide any information obtained by it—

• (a) from a central register referred to in section 40C(1), or

• (b) following a request under subsection (2) or (3) of section 40C,

to a competent authority or to another FIU.]

• F106[(3) FIU Ireland may provide any information obtained by it from the Central Mechanism (within the meaning of the European Union (Anti-Money Laundering: Central Mechanism for Information on Safe-Deposit Boxes and Bank and Payment Accounts) Regulations 2022 (S.I. No. 46 of 2022)) to another FIU.]

• F107[(4) Without prejudice to subsection (1), in exceptional and urgent cases and insofar as is practicable in a prompt manner, FIU Ireland may exchange with other FIUs financial information or financial analysis that may be relevant for the processing or analysis of information related to terrorism or organised crime associated with terrorism.]

40F. F108[Exchange of financial information or financial analysis

40F.— (1) An Article 3(2) authority may share financial information or financial analysis obtained from FIU Ireland, upon request and on a case-by-case basis, with an authority in another Member State that has been designated by that Member State under Article 3(2) of Directive (EU) 2019/1153, where that financial information or financial analysis is necessary for the prevention, detection and combating of money laundering, associate predicate offences and terrorist financing.

• (2) Any –

• (a) dissemination of financial information or financial analysis obtained by an Article 3(2) authority from FIU Ireland to any other authority, agency or department, or

• (b) use of that information or analysis for purposes other than those for which the information was originally provided by FIU Ireland,

shall be subject to the prior consent of FIU Ireland.

• (3) An Article 3(2) authority may request from an authority in another Member State that has been designated by that Member State under Article 3(2) of Directive (EU) 2019/1153, on a case-by-case basis, financial information or financial analysis that was obtained from the Financial Intelligence Unit in that Member State, where the financial information or financial analysis is necessary for the prevention, detection and combating of money laundering, associate predicate offences and terrorist financing.

• (4) An Article 3(2) authority that receives financial information or financial analysis pursuant to a request under subsection (3) shall use that information or analysis only for the purpose for which it was sought or provided.

• (5) FIU Ireland and Article 3(2) authorities shall ensure that financial information and financial analysis requested or shared under this section shall be transmitted using dedicated secure electronic communications ensuring a high level of data security.

• (6) In this section "terrorist financing" has the same meaning as it has in Directive (EU) 2019/1153.]

40G. F109[Exchange of information between Europol and FIU Ireland

40G.— (1) FIU Ireland may reply to Europol to duly justified requests related to financial information and financial analysis made by Europol on a case-by-case basis within the limits of Europol’s responsibilities and for the performance of Europol’s tasks.

• (2) FIU Ireland shall be under no obligation to comply with a request referred to in subsection (1) where there are objective grounds for assuming that the provision of the financial information and financial analysis to which the request relates would have a negative impact on ongoing investigations or analyses, or, in exceptional circumstances, where disclosure of the information and analysis would be clearly disproportionate to the legitimate interests of a natural or legal person or irrelevant with regard to the purposes for which it has been requested.

• (3) FIU Ireland shall be under no obligation to comply with a request referred to in subsection (1) where to do so would —

• (a) be contrary to the essential interests of the security of the State,

• (b) jeopardise the success of an ongoing investigation or the safety of an individual, or

• (c) disclose information relating to organisations or specific intelligence activities in the field of national security, but FIU Ireland shall comply with the request as soon as the financial information or financial analysis in question ceases to fall within the scope of paragraphs (a), (b) or (c).

• (4) FIU Ireland shall –

• (a) provide an appropriate explanation to Europol for any failure to comply with a request made under subsection (1),

• (b) ensure that requests under subsection (1) are dealt with in a timely manner, and in any event no later than requests from FIUs (as referred to in section 40A(1)) in other Member States, and

• (c) ensure that replies to requests under subsection (1) are made in accordance with Regulation (EU) 2016/794 electronically through —

• (i) the information exchange network commonly known as SIENA, or its successor, in the language applicable to SIENA, or

• (ii) where applicable, to the computer network commonly known as FIU.net, or its successor.]

40H. F110[Processing of certain special categories of personal data

40H.— (1) Article 3(2) authorities and FIU Ireland shall, in respect of information exchanged pursuant to section 40CA, section 40DA, section 40E(4), section 40F and section 40G, ensure that only staff who have been specifically trained and specifically authorised may process the following special categories of personal data under the guidance of a data protection officer:

• (a) personal data revealing —

• (i) the racial or ethnic origin of the data subject,

• (ii) the political opinions or the religious or philosophical beliefs of the data subject, or

• (iii) whether the data subject is a member of a trade union;

• (b) data concerning health;

• (c) personal data concerning an individual’s sex life or sexual orientation.

• (2) In this section the following expressions shall have the meaning that they have in section 69 of the Data Protection Act 2018:

"data subject";

"personal data";

"processing";

"special categories of personal data".]

40I. F111[Records of certain information requests

40I.— (1) Article 3(2) authorities and FIU Ireland shall keep records of requests made and received under section 40CA, section 40DA, section 40E(4), section 40F and section 40G.

• (2) The records made shall include -

• (a) the name and contact details of the organisation and of the staff member requesting the information and, as far as possible, of the recipient of the results of the query or search,

• (b) the reference to the national case in relation to which the information is requested,

• (c) the subject matter of the requests, and

• (d) any executing measures of such requests.

• (3) The records shall be –

• (a) kept for a period of five years after their creation, and

• (b) used solely for the purpose of checking the lawfulness of the processing of personal data.

• (4) Article 3(2) authorities and FIU Ireland shall make all records available to the Data Protection Commission upon its request.]

Chapter 4 Reporting of suspicious transactions and of transactions involving certain places

41. Interpretation (Chapter 4).

41.— In this Chapter, a reference to a designated person includes a reference to any person acting, or purporting to act, on behalf of the designated person, including any agent, employee, partner, director or other officer of, or any person engaged under a contract for services with, the designated person.

42. Requirement for designated persons and related persons to report suspicious transactions.

42.— (1) A designated person who knows, suspects or has reasonable grounds to suspect, on the basis of information obtained in the course of carrying on business as a designated person, that another person has been or is engaged in an offence of money laundering or terrorist financing shall report to F112[FIU Ireland] and the Revenue Commissioners that knowledge or suspicion or those reasonable grounds.

• (2) The designated person shall make the report as soon as practicable after acquiring that knowledge or forming that suspicion, or acquiring those reasonable grounds to suspect, that the other person has been or is engaged in money laundering or terrorist financing.

• (3) For the purposes of subsections (1) and (2), a designated person is taken not to have reasonable grounds to know or suspect that another person commits an offence on the basis of having received information until the person has scrutinised the information in the course of reasonable business practice (including automated banking transactions).

• (4) For the purposes of subsections (1) and (2), a designated person may have reasonable grounds to suspect that another person has been or is engaged in an offence of money laundering or terrorist financing if the designated person is unable to apply any measures specified in section 33(2) or (4), 35(1) or 37(1), (3), (4) or (6), in relation to a customer, as a result of any failure on the part of the customer to provide the designated person with documents or information.

• (5) Nothing in subsection (4) limits the circumstances in which a designated person may have reasonable grounds, on the basis of information obtained in the course of carrying out business as a designated person, to suspect that another person has committed an offence of money laundering or terrorist financing.

• (6) A designated person who is required to report under this section shall disclose the following information in the report:

• (a) the information on which the designated person’s knowledge, suspicion or reasonable grounds are based;

• (b) the identity, if the designated person knows it, of the person who the designated person knows, suspects or has reasonable grounds to suspect has been or is engaged in an offence of money laundering or terrorist financing;

• (c) the whereabouts, if the designated person knows them, of the property the subject of the money laundering, or the funds the subject of the terrorist financing, as the case may be;

• (d) any other relevant information.

• F113[(6A) A designated person who is required to make a report under this section shall respond to any request for additional information by FIU Ireland or the Revenue Commissioners as soon as practicable after receiving the request and shall take all reasonable steps to provide any information specified in the request.]

• (7) A designated person who is required to make a report under this section shall not proceed with any suspicious transaction or service connected with the report, or with a transaction or service the subject of the report, prior to the sending of the report to F112[FIU Ireland] and the Revenue Commissioners unless—

• (a) it is not practicable to delay or stop the transaction or service from proceeding, or

• (b) the designated person is of the reasonable opinion that failure to proceed with the transaction or service may result in the other person suspecting that a report may be (or may have been) made or that an investigation may be commenced or in the course of being conducted.

• (8) Nothing in subsection (7) authorises a designated person to proceed with a service or transaction if the person has been directed or ordered not to proceed with the service or transaction under section 17 and the direction or order is in force.

• (9) Except as provided by section 46, a person who fails to comply with this section commits an offence and is liable—

• (a) on summary conviction, to a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months (or both), or

• (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).

• (10) A reference in subsection (7) to a suspicious transaction or service is a reference to a transaction or service that there are reasonable grounds for suspecting would, if it were to proceed—

• (a) comprise money laundering or terrorist financing, or

• (b) assist in money laundering or terrorist financing.

• F114[(11) FIU Ireland shall, where practicable, provide timely feedback to a designated person who is required to make a report under this section on the effectiveness of and follow-up to reports made to it under this section.]

43. Requirement for designated persons to report transactions connected with places designated under section 32.

43.— F115[…]

44. Defence — internal reporting procedures.

44.— (1) Without prejudice to the way in which a report may be made under section 42 F116[…], such a report may be made in accordance with an internal reporting procedure established by an employer for the purpose of facilitating the operation of the section concerned.