{"id":20076,"date":"2022-11-06T19:38:22","date_gmt":"2022-11-06T19:38:22","guid":{"rendered":"https:\/\/legalblog.ie\/?p=20076"},"modified":"2024-03-24T23:53:20","modified_gmt":"2024-03-24T23:53:20","slug":"banks-special-aml","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/banks-special-aml\/","title":{"rendered":"Banks Special AML"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#No_Anonymous_Accounts\" title=\"No Anonymous Accounts\">No Anonymous Accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Correspondent\" title=\"Correspondent\">Correspondent<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Exemptions\" title=\"Exemptions\">Exemptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Electronic_Money\" title=\"Electronic Money\">Electronic Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Modified_Obligations\" title=\"Modified Obligations\">Modified Obligations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Branch_International\" title=\"Branch &amp; International\">Branch &amp; International<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/#Shell_Bank\" title=\"Shell Bank\">Shell Bank<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#CRIMINAL_JUSTICE_MONEY_LAUNDERING_AND_TERRORIST_FINANCING_ACT\" title=\"CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) ACT\">CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) ACT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Special_provisions_applying_to_credit_and_financial_institutions\" title=\"Special provisions applying to credit and financial institutions\">Special provisions applying to credit and financial institutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Measures_for_retrieval_of_information_relating_to_business_relationships\" title=\"Measures for retrieval of information relating to business relationships.\">Measures for retrieval of information relating to business relationships.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Group-wide_policies_and_procedures\" title=\"Group-wide policies and procedures\">Group-wide policies and procedures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Additional_measures_where_implementation_of_policies_and_procedures_is_not_possible\" title=\"Additional measures where implementation of policies and procedures is not possible\">Additional measures where implementation of policies and procedures is not possible<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Anonymous_accounts\" title=\"Anonymous accounts.\">Anonymous accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/banks-special-aml\/2\/#Relationships_between_credit_institutions_and_shell_banks\" title=\"Relationships between credit institutions and shell banks.\">Relationships between credit institutions and shell banks.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"No_Anonymous_Accounts\"><\/span>No Anonymous Accounts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Anonymous accounts or the provision of anonymous passbooks by credit or financial institutions are prohibited. Financial institutions may not retain anonymous accounts or passbooks that came into existence before the provision came into force. It is an offence to fail to comply.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Correspondent\"><\/span>Correspondent<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A credit institution may not enter into a correspondent banking relationship with another credit institution in a place other than the EU unless prior to commencing the relationship,<\/p>\n<ul>\n<li>it gathers sufficient information about the other institution to understand the nature of its business,<\/li>\n<li>it is satisfied on reasonable grounds, based on publicly available information, that the reputation of the institution and the quality of supervision and monitoring are sound,<\/li>\n<li>it is satisfied on reasonable grounds, having assessed the anti-money laundering and anti-terrorist financial controls that apply, that those controls are sound,<\/li>\n<li>that it has ensured that approval is obtained from senior management of the credit institution,<\/li>\n<li>has documented the responsibilities of each institution in applying anti-money laundering and anti-terrorist financing controls to customers and<\/li>\n<\/ul>\n<p>In the case of a proposal that customers of the respondent shall have direct access to a payable-through account held with the credit institution in the name of the respondent institution, it is to be satisfied on reasonable grounds that it has<\/p>\n<ul>\n<li>identified and verified the identity of those customers, and<\/li>\n<li>is able to provide to the credit institution, upon request, documents or information used by the credit institution to identify if the customers applied equivalent measures to those above.<\/li>\n<\/ul>\n<p>Contravention is an offence subject to the same penalties as above<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Exemptions\"><\/span>Exemptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An exempted customer for the following purpose is a credit institution carrying on business in the State or in another money laundering controlling state, a listed company, or a public body either under domestic or EU law.<\/p>\n<p>The above measures are not required if having taken such measures as are necessary to establish that the customer is, in fact, an exempted customer or exempted type of product, it is satisfied that the customer or product is an exempted customer or product.<\/p>\n<p>An exempted product is<\/p>\n<ul>\n<li>A life assurance policy of not more than \u20ac1000 or a single premium of not more than \u20ac2,500,<\/li>\n<li>a policy in respect of a pension scheme, being a policy that does not have a surrender value and may not be used as collateral,<\/li>\n<li>a pension, superannuation or similar scheme,<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Electronic_Money\"><\/span>Electronic Money<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An exempted product includes electronic money in a case where<\/p>\n<ul>\n<li>the electronic device concerned that cannot be recharged,<\/li>\n<li>the monetary value that may be stored electronically does not exceed \u20ac250 or if it cannot be used outside of the State, \u20ac500, or<\/li>\n<li>where the electronic device can be recharged, the total monetary value of all amounts by which the device may be charged or recharged in any calendar year, is less than \u20ac2,500, and none or less than \u20ac1,000 of the electronic money may be redeemed by the issuer in that year.<\/li>\n<\/ul>\n<p>There is an exemption from carrying out certain customer due diligence measures in respect of electronic money. Certain conditions must be fulfilled if the exemption is to be availed of, including that the monetary value that can be stored on the instrument must not exceed a certain amount.<\/p>\n<p>The issuer of the instrument must carry out sufficient monitoring of the business relationship or transactions concerned to enable the detection of unusual or suspicious transactions. The exemption cannot be applied if the customer is established or resident in a high-risk third country or if the customer or beneficial owner is a politically exposed person.<\/p>\n<p>A designated business to examine the background and purpose of all complex and unusual transactions and to increase the degree and nature of monitoring of a business relationship in order to determine whether the transactions appear suspicious. Failure to comply with legislation is an offence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Modified_Obligations\"><\/span>Modified Obligations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A credit institution is not obliged to apply the measures in relation to solicitor\u2019s client account or certain other parties who are supervised or monitored for compliance in accordance with the Money Laundering legislation.\u00a0 There are exceptions to the exemption.<\/p>\n<p>A credit institution may apply the exemption in relation to beneficial ownership of money in a trust, only if it is satisfied that the information on the identity of the beneficial owners held is available, on request. The exemptions are not available in certain specified circumstances.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Branch_International\"><\/span>Branch &amp; International<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Branches or subsidiaries, outside an EU State, of a credit or financial institution that is a designated business, must comply with requirements equivalent to those set out in Chapters II and IV of the Third Money Laundering Directive. If this is not possible, the designated business must inform the regulator and apply measures to address the risk of money laundering or terrorist financing.<\/p>\n<p>A credit or financial institution that is a designated business and incorporated in the State communicates policies and procedures adopted to branches or subsidiaries outside an EU State. There are penalties for failing to comply.<\/p>\n<p>A regulator must take certain steps when it has been notified that a third country\u2019s laws do not allow the implementation of group-wide policies and procedures. The regulator must exercise additional supervisory actions, which may include directing the group not to establish a business relationship. An appeal may be brought against the notice to the High Court. Failure to comply with a direction is an offence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Shell_Bank\"><\/span>Shell Bank<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Entering, by a credit institution, into a banking relationship with a shell bank is prohibited. Any pre-existing arrangements must cease to continue on the commencement of the provision. A credit institution must refrain from engaging in or continuing a correspondent banking relationship with a bank where the institution is aware that the bank permits its accounts to be used by a shell bank.<\/p>\n<p>A credit institution must adopt measures to ensure that it does not enter into or continue a correspondent banking relationship with a bank engaged in such activities. A breach is an offence under the provision.<\/p>\n<p>A \u2018shell bank\u2019 means a credit institution or financial institution (or a body corporate that is engaged in activities equivalent to those of a credit institution or financial institution) that\u2014<\/p>\n<ul>\n<li>does not have a physical presence involving meaningful decision-making and management in the jurisdiction in which it is incorporated,<\/li>\n<li>is not authorised to operate, and is not subject to supervision, as a credit institution, or as a financial institution, (or equivalent) in the jurisdiction in which it is incorporated, and<\/li>\n<li>is not affiliated with another body corporate that\u2014<\/li>\n<li>has a physical presence, involving meaningful decision-making and management, in the jurisdiction in which it is incorporated, and<\/li>\n<li>is authorised to operate, and is subject to supervision, as a credit institution, a financial institution or an insurance undertaking, in the jurisdiction in which it is incorporated.<\/li>\n<\/ul>\n<p><!--nextpage--><\/p>\n<h2>CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) ACT<\/h2>\n<p>&nbsp;<\/p>\n<p>Chapter 7<\/p>\n<h4>Special provisions applying to credit and financial institutions<\/h4>\n<h4>Measures for retrieval of information relating to business relationships.<\/h4>\n<p>56.\u2014(1) A F119[\u2026] designated person shall have systems in place to enable it to respond fully and promptly to enquiries from the Garda S\u00edoch\u00e1na\u2014<\/p>\n<p>(a) as to whether or not it has, or has had, a business relationship, within the previous F120[5 years], with a person specified by the Garda S\u00edoch\u00e1na, and<\/p>\n<p>(b) the nature of any such relationship with that person.<\/p>\n<p>(2) F120[A designated person who] fails to comply with this section commits an offence and is liable\u2014<\/p>\n<p>(a) on summary conviction, to a fine not exceeding \u20ac5,000 or imprisonment for a term not exceeding 12 months (or both), or<\/p>\n<p>(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F119<br \/>\nDeleted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 28(a), S.I. No. 486 of 2018.<\/p>\n<p>F120<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 28(b), (c), S.I. No. 486 of 2018.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E27<br \/>\nA fine of \u20ac5,000 translates into a class A fine, not greater than \u20ac5,000, as provided (4.01.2011) by Fines Act 2010 (8\/2010), ss. 3, 4(2) and table ref. no. 1, S.I. No. 662 of 2010.<\/p>\n<p>F121[<\/p>\n<h4>Group-wide policies and procedures<\/h4>\n<p>57.\u2014 (1) A designated person that is part of a group shall implement group-wide policies and procedures, including data protection policies and policies and procedures for sharing information within the group, for the purposes of carrying out customer due diligence and preventing and detecting the commission of money laundering and terrorist financing.<\/p>\n<p>(2) A designated person incorporated in the State that operates a branch, majority-owned subsidiary or establishment in a place other than the State shall ensure that the branch, majority-owned subsidiary or establishment adopts and applies group-wide policies and procedures referred to in subsection (1).<\/p>\n<p>(3) Where a place referred to in subsection (2), other than a Member State, is a place that does not permit the implementation of the policies and procedures required under subsection (1) the designated person shall\u2014<\/p>\n<p>(a) ensure that each of its branches and majority-owned subsidiaries in that place applies additional measures to effectively handle the risk of money laundering or terrorist financing, and<\/p>\n<p>(b) notify the competent authority for that designated person of the additional measures applied under paragraph (a).<\/p>\n<p>(4) A designated person incorporated in the State that operates a branch, majority-owned subsidiary or establishment in another Member State shall ensure that the branch, majority-owned subsidiary or establishment complies with the requirements of the Fourth Money Laundering Directive as they apply in that Member State.<\/p>\n<p>(5) A designated person incorporated in the State that has a branch or majority-owned subsidiary located in a place, other than a Member State, in which the minimum requirements relating to the prevention and detection of money laundering and terrorist financing are less strict than those of the State shall ensure that the branch or majority-owned subsidiary implement the requirements of the State, including requirements relating to data protection, to the extent that the third country\u2019s law so allows.<\/p>\n<p>(6) Subject to section 49, a designated person that is part of a group that makes a report under section 42 shall share that report within the group for the purposes of preventing and detecting the commission of money laundering and terrorist financing unless otherwise instructed by FIU Ireland.<\/p>\n<p>(7) A designated person that fails to comply with this section commits an offence and is liable\u2014<\/p>\n<p>(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or<\/p>\n<p>(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F121<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 29, S.I. No. 486 of 2018. A class A fine means a fine not greater than \u20ac5,000 as provided (4.01.2011) by Fines Act 2010 (8\/2010), ss. 3, 4(1), S.I. No. 662 of 2010.<\/p>\n<p>F122[<\/p>\n<h4>Additional measures where implementation of policies and procedures is not possible<\/h4>\n<p>57A.\u2014 (1) Where a competent authority receives a notification under section 57(3)(b) and is not satisfied that the additional measures applied in accordance with that subsection are sufficient for the purposes of carrying out customer due diligence and preventing and detecting the commission of money laundering and terrorist financing it shall exercise additional supervisory actions, where necessary requesting a group to close down its operations in the third country and may, by notice in writing, direct the designated person to take such additional actions as the competent authority considers necessary to mitigate the risk of money laundering or terrorist financing.<\/p>\n<p>(2) A notice under subsection (1)\u2014<\/p>\n<p>(a) may direct the group\u2014<\/p>\n<p>(i) not to establish a business relationship,<\/p>\n<p>(ii) to terminate a business relationship, or<\/p>\n<p>(iii) not to undertake a transaction,<\/p>\n<p>and<\/p>\n<p>(b) shall specify the matters which, in the opinion of the competent authority, give rise to the risk of money laundering or terrorist financing and in respect of which the additional measures taken are insufficient.<\/p>\n<p>(3) A notice under subsection (1) shall take effect\u2014<\/p>\n<p>(a) where the notice so declares, immediately the notice is received by the person on whom it is served,<\/p>\n<p>(b) in any other case\u2014<\/p>\n<p>(i) where no appeal is taken against the notice, on the expiration of the period during which such an appeal may be taken or the day specified in the notice as the day on which it is to come into effect, whichever is the later, or<\/p>\n<p>(ii) in case such an appeal is taken, on the day next following the day on which the notice is confirmed on appeal or the appeal is withdrawn or the day specified in the notice as that on which it is to come into effect, whichever is the later.<\/p>\n<p>(4) A designated person that is aggrieved by a notice may, within the period of 30 days beginning on the day on which the notice is served, appeal against the notice to the High Court and in determining the appeal the court may\u2014<\/p>\n<p>(a) if the court is satisfied that in the circumstances of the case it is reasonable to do so, confirm the notice, with or without modification, or<\/p>\n<p>(b) cancel the notice.<\/p>\n<p>(5) The bringing of an appeal against a notice which is to take effect in accordance with subsection (3)(a) shall not have the effect of suspending the operation of the notice, but the appellant may apply to the court to have the operation of the notice suspended until the appeal is disposed of and, on such application, the court may, if it thinks proper to do so, direct that the operation of the notice be suspended until the appeal is disposed of.<\/p>\n<p>(6) Where on the hearing of an appeal under this section a notice is confirmed the High Court may, on the application of the appellant, suspend the operation of the notice for such period as in the circumstances of the case the High Court considers appropriate.<\/p>\n<p>(7) A person who appeals under subsection (4) against a notice or who applies for a direction suspending the application of the notice under subsection (6) shall at the same time notify the competent authority concerned of the appeal or the application and the grounds for the appeal or the application and the competent authority shall be entitled to appear, be heard and adduce evidence on the hearing of the appeal or the application.<\/p>\n<p>(8) A designated person that fails to comply with a direction made by the competent authority for that designated person under subsection (1) commits an offence and is liable\u2014<\/p>\n<p>(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or<\/p>\n<p>(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).<\/p>\n<p>(9) A competent authority may, by notice in writing to the designated person concerned, vary or revoke a notice under subsection (1).]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F122<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 30, S.I. No. 486 of 2018. A class A fine means a fine not greater than \u20ac5,000 as provided (4.01.2011) by Fines Act 2010 (8\/2010), ss. 3, 4(1), S.I. No. 662 of 2010.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E28<br \/>\nThe section heading is taken from the amending section in the absence of one included in the amendment.<\/p>\n<h4>Anonymous accounts.<\/h4>\n<p>58.\u2014 (1) A credit institution or financial institution shall not set up an anonymous account for, or provide an F123[anonymous passbook or safe-deposit box] to, any customer.<\/p>\n<p>(2) A credit institution or financial institution shall not keep any anonymous account, or F123[anonymous passbook or safe-deposit box], that was in existence immediately before the commencement of this section for any customer.<\/p>\n<p>(3) A credit institution or financial institution that fails to comply with this section commits an offence and is liable\u2014<\/p>\n<p>(a) on summary conviction, to a fine not exceeding \u20ac5,000 or imprisonment for a term not exceeding 12 months (or both), or<\/p>\n<p>(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).<\/p>\n<p>Annotations:<\/p>\n<p>Amendments:<\/p>\n<p>F123<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 17, S.I. No. 188 of 2021.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E29<br \/>\nA fine of \u20ac5,000 translates into a class A fine, not greater than \u20ac5,000, as provided (4.01.2011) by Fines Act 2010 (8\/2010), ss. 3, 4(2) and table ref. no. 1, S.I. No. 662 of 2010.<\/p>\n<h4>Relationships between credit institutions and shell banks.<\/h4>\n<p>F124[59.\u2014 (1) A credit institution or financial institution shall not enter into a correspondent relationship with a shell bank.<\/p>\n<p>(2) A credit institution or financial institution that has entered into a correspondent relationship with a shell bank before the commencement of this section shall not continue that relationship.<\/p>\n<p>(3) A credit institution or financial institution shall not engage in or continue a correspondent relationship with a bank that the institution knows permits its accounts to be used by a shell bank.<\/p>\n<p>(4) A credit institution or financial institution shall apply appropriate measures to ensure that it does not enter into or continue a correspondent relationship that permits its accounts to be used by a shell bank.<\/p>\n<p>(5) A credit institution or financial institution that fails to comply with this section commits an offence and is liable\u2014<\/p>\n<p>(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or<\/p>\n<p>(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).<\/p>\n<p>(6) In this section, &#8220;shell bank&#8221; means a credit institution or financial institution (or a body corporate that is engaged in activities equivalent to those of a credit institution or financial institution) that\u2014<\/p>\n<p>(a) does not have a physical presence, involving meaningful decision-making and management, in the jurisdiction in which it is incorporated,<\/p>\n<p>(b) is not authorised to operate, and is not subject to supervision, as a credit institution, or as a financial institution, (or equivalent) in the jurisdiction in which it is incorporated, and<\/p>\n<p>(c) is not affiliated with another body corporate that\u2014<\/p>\n<p>(i) has a physical presence, involving meaningful decision-making and management, in the jurisdiction in which it is incorporated, and<\/p>\n<p>(ii) is authorised to operate, and is subject to supervision, as a credit institution, a financial institution or an insurance undertaking, in the jurisdiction in which it is incorporated.]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F124<br \/>\nSubstituted Inserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 31, S.I. No. 486 of 2018. A class A fine means a fine not greater than \u20ac5,000 as provided (4.01.2011) by Fines Act 2010 (8\/2010), ss. 3, 4(1), S.I. No. 662 of 2010.<\/p>\n<p>&nbsp;<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-20076\" data-postid=\"20076\" class=\"themify_builder_content themify_builder_content-20076 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>No Anonymous Accounts Anonymous accounts or the provision of anonymous passbooks by credit or financial institutions are prohibited. Financial institutions may not retain anonymous accounts or passbooks that came into existence before the provision came into force. It is an offence to fail to comply. Correspondent A credit institution may not enter into a correspondent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[291],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/20076"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=20076"}],"version-history":[{"count":8,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/20076\/revisions"}],"predecessor-version":[{"id":34104,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/20076\/revisions\/34104"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=20076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=20076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=20076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}