{"id":20097,"date":"2022-11-06T20:25:40","date_gmt":"2022-11-06T20:25:40","guid":{"rendered":"https:\/\/legalblog.ie\/?p=20097"},"modified":"2024-03-24T23:50:19","modified_gmt":"2024-03-24T23:50:19","slug":"aml-due-diligence","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/aml-due-diligence\/","title":{"rendered":"AML Due Diligence"},"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\/aml-due-diligence\/#Customer_Due_Diligence\" title=\"Customer Due Diligence\">Customer Due Diligence<\/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\/aml-due-diligence\/#Timing\" title=\"Timing\">Timing<\/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\/aml-due-diligence\/#Steps_to_be_Taken\" title=\"Steps to be Taken\">Steps to be Taken<\/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\/aml-due-diligence\/#Beneficial_Owners\" title=\"Beneficial Owners\">Beneficial Owners<\/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\/aml-due-diligence\/#Minimum_Steps\" title=\"Minimum Steps\">Minimum Steps<\/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\/aml-due-diligence\/#Delay_in_Identification\" title=\"Delay in Identification\">Delay in Identification<\/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\/aml-due-diligence\/#Investment_Funds_Policies\" title=\"Investment Funds &amp; Policies\">Investment Funds &amp; Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/#Offence\" title=\"Offence\">Offence<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/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-10\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Customer_Due_Diligence-2\" title=\"Customer Due Diligence\">Customer Due Diligence<\/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\/aml-due-diligence\/2\/#Identification_and_verification_of_customers_and_beneficial_owners\" title=\"Identification and verification of customers and beneficial owners.\">Identification and verification of customers and beneficial owners.<\/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\/aml-due-diligence\/2\/#Electronic_money_derogation\" title=\"Electronic money derogation\">Electronic money derogation<\/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\/aml-due-diligence\/2\/#Simplified_customer_due_diligence\" title=\"Simplified customer due diligence\">Simplified customer due diligence<\/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\/aml-due-diligence\/2\/#Special_measures_applying_to_business_relationships\" title=\"Special measures applying to business relationships.\">Special measures applying to business relationships.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Examination_of_background_and_purpose_of_certain_transactions\" title=\"Examination of background and purpose of certain transactions\">Examination of background and purpose of certain transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Enhanced_customer_due_diligence_%E2%80%94_politically_exposed_persons\" title=\"Enhanced customer due diligence \u2014 politically exposed persons.\">Enhanced customer due diligence \u2014 politically exposed persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Enhanced_customer_due_diligence_%E2%80%94_correspondent_banking_relationships\" title=\"Enhanced customer due diligence \u2014 correspondent banking relationships.\">Enhanced customer due diligence \u2014 correspondent banking relationships.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Enhanced_customer_due_diligence_%E2%80%93_high-risk_third_countries\" title=\"Enhanced customer due diligence &#8211; high-risk third countries\">Enhanced customer due diligence &#8211; high-risk third countries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Enhanced_due_diligence_in_cases_of_heightened_risk\" title=\"Enhanced due diligence in cases of heightened risk\">Enhanced due diligence in cases of heightened risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Reliance_on_other_persons_to_carry_out_customer_due_diligence\" title=\"Reliance on other persons to carry out customer due diligence.\">Reliance on other persons to carry out customer due diligence.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Non-exhaustive_list_of_factors_suggesting_potentially_lower_risk\" title=\"Non-exhaustive list of factors suggesting potentially lower risk\">Non-exhaustive list of factors suggesting potentially lower risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/legalblog.ie\/aml-due-diligence\/2\/#Non-exhaustive_list_of_factors_suggesting_potentially_higher_risk\" title=\"Non-exhaustive list of factors suggesting potentially higher risk\">Non-exhaustive list of factors suggesting potentially higher risk<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Customer_Due_Diligence\"><\/span>Customer Due Diligence<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Customer due diligence obligations apply to customers of persons within the scope of the legislation. They apply prior to establishing a business relationship or carrying out an occasional transaction on behalf of the customer. Customer due diligence must be carried out at any time where the risk of money laundering and terrorist financing warrants its application. This is in addition to the times already specified.<\/p>\n<p>The measure shall be taken out prior to carrying out any service If having regard to the circumstances, including<\/p>\n<ul>\n<li>the type of service, customer, purpose, the value of the transaction,<\/li>\n<li>the type of business service<\/li>\n<li>the source of funds,<\/li>\n<li>the customers&#8217; explanation for the source of funds<\/li>\n<li>the value of the transaction<\/li>\n<li>a person has reasonable grounds to suspect that the customer is involved in or the service or transaction sought by the customer is for the purpose of money laundering or terrorist financing or<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Timing\"><\/span>Timing<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The measure shall be taken out prior to carrying out any service. If, prior to the transaction, a person has reasonable grounds to doubt the veracity or adequacy of identification documentation or other documents which vouch the identity of the customer and the person is not obtained any other documents are information of the person has reasonable grounds to believe can be relied on to confirm the identity of the customers.<\/p>\n<p>The measures shall also apply if at any time the relevant circumstances have changed where the risk of money laundering and terrorist financing warrants it<\/p>\n<p>It also applies at any time when 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.<\/p>\n<p>A credit institution may allow an account to be opened before customer due diligence measures are carried out, so long as no transaction is carried out. This applies to all financial institutions, and it applies to accounts that permit transactions in transferable securities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Steps_to_be_Taken\"><\/span>Steps to be Taken<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The measures applicable include the obligation to identify<\/p>\n<ul>\n<li>the customer, based on documents that can be relied on to confirm identity, including documents from government sources, prescribed classes of documents or information from trust services specified in the electronic identification regulations<\/li>\n<li>beneficial owners connected with the customer or service must be identified and measures reasonably warranted by the risk of money laundering or terrorist financing to verify the beneficial owner\u2019s identity to the extent necessary to ensure that the person has reasonable grounds to be satisfied that he knows who the beneficial owner is and understands the ownership or control structure of the entity or arrangement.<\/li>\n<li>check the beneficial ownership registers for trusts and companies (see other articles)<\/li>\n<\/ul>\n<p>Where the beneficial owner is a senior managing official in accordance with criteria in the money laundering directive measures must be taken to verify its identity keep records of the action taken to verify identity, including any difficulties encountered in the verification process<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Beneficial_Owners\"><\/span>Beneficial Owners<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The obligations apply to beneficial owners of bodies corporates, beneficiaries under trust and, beneficial partners.. Designated businesses must identify and verify the identity of, any beneficial owner connected with the customer.<\/p>\n<p>In broad terms, a person is a beneficial owner in respect of a company, or partnership, if he exercises control or holds more than 25% of the share capital, shares in it. Any person who \u201ccontrols\u201d the partnership is to be considered a beneficial owner, and not just persons who control the management of the partnership. A person is a beneficial owner in relation to a trust if he is entitled to at least 25% of the capital of the trust, controls the trust, or is entitled to an interest in at least 25% of the trust assets.<\/p>\n<p>After the 2018 Act, the threshold of 25% ownership no longer applies, and settlors, trustees and protectors are now to be considered beneficial owners for the purpose of the legislation.<\/p>\n<p>The 2018 Act also amends the definition of trusts insofar as it relates to other legal entities and legal arrangements. It deems them to the subject to an equivalent amendment to trustees so that the 25% ownership no longer applies, and the equivalent of settlors, trustees and protectors are considered beneficial owners for the purpose of the legislation.<\/p>\n<p>The test looks through companies held by trusts.\u00a0 Control is defined widely to include power alone or exercisable with others, including with others\u2019 consent to appoint and remove trustees, consent or veto the exercise of a power or to vary trust, dispose of or advance, lend, pay or apply any trust assets.<\/p>\n<p>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 pay-out or at the time of the exercise by the beneficiary of its vested rights.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Minimum_Steps\"><\/span>Minimum Steps<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulations may prescribe classes of documents and combinations of classes of documents which are adequate to identify customers. They may differ in relation to particular service providers&#8217; transactions and risks of money laundering and terrorist financing.<\/p>\n<p>A minimum of one or more of the following procedures must be applied to identify a customer;<br \/>\n\u2022 verification based on reliable documents;<br \/>\n\u2022 verification based on confirmation from another acceptable institution;<\/p>\n<p>\u2022 ensuring one or more of the following if the following transactions is carried out through an account with an acceptable credit institution;<br \/>\no first payment by the customer to the person for the service;<br \/>\no first payment in relation to a transaction in case of persons trading in goods in respect of transactions mentioned below, where such payment is made to the designated person.<br \/>\n\u2022 in the case of transactions involving payment of a total of at least \u20ac15,000 where such payment is made by the customer to another designated entity\/ person.<\/p>\n<p>An acceptable institution is a credit institution that carries on business in the State or in another State subject to Money Laundering legislation.<\/p>\n<p>The Minister may prescribe classes of documents or a combination of documents for the purpose of identifying adequate identifications.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Delay_in_Identification\"><\/span>Delay in Identification<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A designated person may verify the identity of a customer or beneficial owner during the establishment of a business relationship if he has reasonable grounds for believing that verifying the identity of the beneficial owner prior to the establishment would interrupt the normal conduct of business, and there would be no real risk that the consumer is involved in, nor is service sought by the customer for the purpose of money laundering or terrorist financing.<\/p>\n<p>However, the designated person must take reasonable steps to verify the identity of the customer, in accordance with the above procedures, as soon as practicable. A credit institution may open a bank account before verifying identity if it must verify identity before transactions are undertaken.<\/p>\n<p>Where a designated person was unable to take the measures specified above as a result of failure on the part of the customer to provide the relevant documents, he\/it must not provide the service or carry out the transaction for so long as the failure remains unrectified. He shall discontinue the business relationship if any.<\/p>\n<p>This does not apply to prevent a legal professional or other professional adviser from ascertaining a person\u2019s legal position or performing the task of defending or representing a person in civil or criminal proceedings, including providing advice instituting or avoiding such proceedings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Funds_Policies\"><\/span>Investment Funds &amp; Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Additional obligations apply in relation to a customer and beneficial owner to credit institutions and financial institutions with respect to investment funds and policies. 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\u2014<\/p>\n<ul>\n<li>take the names of beneficiaries that are identified as specifically named persons or legal arrangements, and<\/li>\n<li>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 pay-out.<\/li>\n<\/ul>\n<p>A credit institution or financial institution shall verify the identity of a beneficiary at the time of the payout.<\/p>\n<p>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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Offence\"><\/span>Offence<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Breach of any of the above constitutes an offence. A person is liable on summary conviction to a fine up to \u20ac5,000 or imprisonment up to 12 months or both. He is liable on conviction on indictment to a fine or imprisonment of up to five years.<\/p>\n<p><!--nextpage--><\/p>\n<h2>CRIMINAL JUSTICE (MONEY LAUNDERING AND TERRORIST FINANCING) ACT<\/h2>\n<p>Chapter 3<\/p>\n<h4>Customer Due Diligence<\/h4>\n<h4>Identification and verification of customers and beneficial owners.<\/h4>\n<p>33.\u2014 (1) A designated person shall apply the measures specified in F44[subsection (2)], in relation to a customer of the designated person\u2014<\/p>\n<p>(a) prior to establishing a business relationship with the customer,<\/p>\n<p>(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,<\/p>\n<p>F45[(c) prior to carrying out any service for the customer, if, having regard to the circumstances, including\u2014<\/p>\n<p>(i) the customer, or the type of customer, concerned,<\/p>\n<p>(ii) the type of any business relationship which the person has with the customer,<\/p>\n<p>(iii) the type of service or of any transaction or product in respect of which the service is sought,<\/p>\n<p>(iv) the purpose (or the customer\u2019s explanation of the purpose) of the service or of any transaction or product in respect of which the service is sought,<\/p>\n<p>(v) the value of any transaction or product in respect of which the service is sought,<\/p>\n<p>(vi) the source (or the customer\u2019s explanation of the source) of funds for any such transaction or product,<\/p>\n<p>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]<\/p>\n<p>or<\/p>\n<p>(d) prior to carrying out any service for the customer if\u2014<\/p>\n<p>(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 (\u201cthe 1994 Act\u201d) 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<\/p>\n<p>(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 F44[customer,]<\/p>\n<p>F46[and<\/p>\n<p>(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 F47[application, or]]<\/p>\n<p>F48[(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.]<\/p>\n<p>(2) The measures that shall be applied F46[, in accordance with section 30B,] by a designated person under subsection (1) are as follows:<\/p>\n<p>(a) identifying the customer, and verifying the customer\u2019s 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\u2014<\/p>\n<p>(i) documents from a government source (whether or not a State government source), F49[\u2026]<\/p>\n<p>F48[(ia) information from relevant trust services as specified in the Electronic Identification Regulation, or]<\/p>\n<p>(ii) any prescribed class of documents, or any prescribed combination of classes of documents;<\/p>\n<p>(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\u2014<\/p>\n<p>(i) to verify the beneficial owner\u2019s 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, F49[\u2026]<\/p>\n<p>(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 F47[concerned, and]<\/p>\n<p>F48[(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\u2019s identity including any difficulties encountered in the verification process.]<\/p>\n<p>F46[(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).]<\/p>\n<p>(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.<\/p>\n<p>(4) F50[\u2026]<\/p>\n<p>(5) Notwithstanding subsection (1)(a), a designated person may verify the identity of a customer or beneficial owner, in accordance with F44[subsection (2)], during the establishment of a business relationship with the customer if the designated person has reasonable grounds to believe that\u2014<\/p>\n<p>(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<\/p>\n<p>(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,<\/p>\n<p>but the designated person shall take reasonable steps to verify the identity of the customer or beneficial owner, in accordance with F44[subsection (2)], as soon as practicable.<\/p>\n<p>(6) Notwithstanding subsection (1)(a), F44[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 F44[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.<\/p>\n<p>F51[(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.<\/p>\n<p>(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\u2014<\/p>\n<p>(a) take the names of beneficiaries that are identified as specifically named persons or legal arrangements, and<\/p>\n<p>(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.<\/p>\n<p>(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).<\/p>\n<p>(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.<\/p>\n<p>(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.]<\/p>\n<p>(8) F52[Subject to subsection (8A), a designated person] who is unable to apply the measures specified in F52[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\u2014<\/p>\n<p>(a) shall not provide the service or carry out the transaction sought by that customer for so long as the failure remains unrectified, and<\/p>\n<p>(b) shall discontinue the business relationship (if any) with the customer.<\/p>\n<p>F53[(8A) Nothing in subsection (8) or section 35(2) shall operate to prevent a relevant independent legal professional or relevant professional adviser\u2014<\/p>\n<p>(a) ascertaining the legal position of a person, or<\/p>\n<p>(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.]<\/p>\n<p>(9) F52[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>(10) F50[\u2026]<\/p>\n<p>(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.<\/p>\n<p>(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.<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F44<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(a), (b), (g), (h), S.I. No. 486 of 2018.<\/p>\n<p>F45<br \/>\nSubstituted (14.06.2013) by Criminal Justice Act 2013 (19\/2013), s. 6, S.I. No. 196 of 2013.<\/p>\n<p>F46<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(c), (d), (e), S.I. No. 486 of 2018.<\/p>\n<p>F47<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 6(a)(i), (b)(ii)(II), S.I. No. 188 of 2021.<\/p>\n<p>F48<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 6(a)(ii), (b)(ii)(III), S.I. No. 188 of 2021.<\/p>\n<p>F49<br \/>\nDeleted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 6(b)(i)(I), (b)(ii)(I), S.I. No. 188 of 2021.<\/p>\n<p>F50<br \/>\nDeleted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(f), (m), S.I. No. 486 of 2018.<\/p>\n<p>F51<br \/>\nSubstituted and inserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(i), S.I. No. 486 of 2018.<\/p>\n<p>F52<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(j), (l), S.I. No. 486 of 2018.<\/p>\n<p>F53<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 11(k), S.I. No. 486 of 2018.<\/p>\n<p>F54[<\/p>\n<h4>Electronic money derogation<\/h4>\n<p>33A.\u2014 (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\u2014<\/p>\n<p>(a) the payment instrument concerned\u2014<\/p>\n<p>(i) is not reloadable, or<\/p>\n<p>(ii) cannot be used outside of the State and has a maximum monthly payment transactions limit not exceeding F55[\u20ac150],<\/p>\n<p>F55[(b) the monetary value that may be stored electronically on the payment instrument concerned does not exceed \u20ac150,]<\/p>\n<p>(c) the payment instrument concerned is used exclusively to purchase goods and services,<\/p>\n<p>(d) the payment instrument concerned cannot be funded with anonymous electronic money,<\/p>\n<p>(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, F56[\u2026]<\/p>\n<p>(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 F55[\u20ac50, and]<\/p>\n<p>F57[(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 \u20ac50.]<\/p>\n<p>(2) A designated person shall not apply the exemption provided for in subsection (1) if\u2014<\/p>\n<p>(a) the customer concerned is established, or resident in, a high-risk third country, or<\/p>\n<p>(b) the designated person is required to apply measures, in relation to the customer or beneficial owner (if any) concerned, under section 37.]<\/p>\n<p>F57[(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).<\/p>\n<p>(4) A person who fails to comply with subsection (3) commits an offence and is liable\u2014<\/p>\n<p>(i) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months, or both, or<\/p>\n<p>(ii) 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>F54<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 12, S.I. No. 486 of 2018.<\/p>\n<p>F55<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 7(a)(i), (ii), (iv), S.I. No. 188 of 2021.<\/p>\n<p>F56<br \/>\nDeleted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 7(a)(iii), S.I. No. 188 of 2021.<\/p>\n<p>F57<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 7(a)(v), (b), S.I. No. 188 of 2021. 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>E18<br \/>\nThe section heading is taken from the amending section in the absence of one included in the amendment.<\/p>\n<p>Exemptions from section 33.<\/p>\n<p>34.\u2014 F58[\u2026]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F58<br \/>\nRepealed (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 40(b), S.I. No. 486 of 2018.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E19<br \/>\nPrevious affecting provision: subs. (1) substituted (14.06.2013) by Criminal Justice Act 2013 (19\/2013), s. 7, S.I. No. 196 of 2013; section repealed as per F-note above.<\/p>\n<p>F59[<\/p>\n<h4>Simplified customer due diligence<\/h4>\n<p>34A.\u2014 (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\u2014<\/p>\n<p>(a) identifies in the relevant business risk assessment, an area of lower risk into which the relationship or transaction falls, and<\/p>\n<p>(b) considers that the relationship or transaction presents a lower degree of risk.<\/p>\n<p>(2) For the purposes of identifying an area of lower risk a designated person shall have regard to\u2014<\/p>\n<p>(a) the matters specified in section 30A(2),<\/p>\n<p>(b) the presence of any factor specified in Schedule 3, and<\/p>\n<p>(c) any additional prescribed factor suggesting potentially lower risk.<\/p>\n<p>(3) Where a designated person applies simplified due diligence measures in accordance with subsection (1) it shall\u2014<\/p>\n<p>(a) keep a record of the reasons for its determination and the evidence on which it was based, and<\/p>\n<p>(b) carry out sufficient monitoring of the transactions and business relationships to enable the designated person to detect unusual or suspicious transactions.<\/p>\n<p>(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.<\/p>\n<p>(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.]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F59<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 13, S.I. No. 486 of 2018.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E20<br \/>\nThe section heading is taken from the amending section in the absence of one included in the amendment.<\/p>\n<h4>Special measures applying to business relationships.<\/h4>\n<p>35.\u2014 (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.<\/p>\n<p>(2) F60[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.<\/p>\n<p>F60[(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.]<\/p>\n<p>F61[(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\u2019s beneficial ownership register or in the Central Register of Beneficial Ownership of trusts, as the case may be.]<\/p>\n<p>F62[(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.<\/p>\n<p>(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.<\/p>\n<p>(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.]<\/p>\n<p>(4) Except as provided by section 36, 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>F60<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 14(a), (b), S.I. No. 486 of 2018.<\/p>\n<p>F61<br \/>\nSubstituted (24.04.2021) by European Union (Anti-Money Laundering: Beneficial Ownership of Trusts) Regulations 2021 (S.I. No. 194 of 2021), reg. 35, in effect as per reg. 1(2).<\/p>\n<p>F62<br \/>\nInserted (24.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 8, S.I. No. 188 of 2021.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E21<br \/>\nPrevious affecting provision: subs. (3A) inserted (24.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 8, S.I. No. 188 of 2021; section substituted as per F-note above.<\/p>\n<p>Exemption from section 35(1).<\/p>\n<p>36.\u2014 F63[\u2026]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F63<br \/>\nRepealed (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 40(b), S.I. No. 486 of 2018.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E22<br \/>\nPrevious affecting provision: subs. (1) substituted (14.06.2013) by Criminal Justice Act 2013 (19\/2013), s. 8, S.I. No. 196 of 2013; section repealed as per F-note above.<\/p>\n<p>F64[<\/p>\n<h4>Examination of background and purpose of certain transactions<\/h4>\n<p>36A.\u2014 F65[(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\u2014<\/p>\n<p>(a) are complex,<\/p>\n<p>(b) are unusually large,<\/p>\n<p>(c) are conducted in an unusual pattern, or<\/p>\n<p>(d) do not have an apparent economic or lawful purpose.]<\/p>\n<p>(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.<\/p>\n<p>(3) 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 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>F64<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 15, 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>F65<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 9, S.I. No. 188 of 2021.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E23<br \/>\nThe section heading is taken from the amending section in the absence of one included in the amendment.<\/p>\n<h4>Enhanced customer due diligence \u2014 politically exposed persons.<\/h4>\n<p>37.\u2014 F66[(1) A designated person shall take steps to determine whether or not\u2014<\/p>\n<p>(a) a customer, or a beneficial owner connected with the customer or service concerned, or<\/p>\n<p>(b) a beneficiary of a life assurance policy or other investment-related assurance policy, or a beneficial owner of the beneficiary,<\/p>\n<p>is a politically exposed person or an immediate family member, or a close associate, of a politically exposed person.]<\/p>\n<p>F66[(2) The designated person shall take the steps referred to in subsection (1)\u2014<\/p>\n<p>(a) in relation to a person referred to subsection (1)(a), prior to\u2014<\/p>\n<p>(i) establishing a business relationship with the customer, or<\/p>\n<p>(ii) carrying out an occasional transaction with, for or on behalf of the customer or assisting the customer to carry out an occasional transaction,<\/p>\n<p>and<\/p>\n<p>(b) in relation to a person mentioned in subsection (1)(b)\u2014<\/p>\n<p>(i) prior to the payout of the policy, or<\/p>\n<p>(ii) at the time of the assignment, in whole or in part, of the policy.]<\/p>\n<p>(3) The steps to be taken are such steps as are reasonably warranted by the risk that the customer F67[, or beneficiary] or beneficial owner (as the case may be) is involved in money laundering or terrorist financing.<\/p>\n<p>F68[(4) If a designated person knows or has reasonable grounds to believe that a customer F69[\u2026] 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\u2014<\/p>\n<p>(a) ensure that approval is obtained from senior management of the designated person before a business relationship is established or continued with the customer,<\/p>\n<p>(b) determine the source of wealth and of funds for the following transactions\u2014<\/p>\n<p>(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<\/p>\n<p>(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,<\/p>\n<p>and<\/p>\n<p>F66[(c) in addition to measures to be applied in accordance with section 35(3), apply enhanced monitoring of the business relationship with the customer.]]<\/p>\n<p>F70[(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.]<\/p>\n<p>(5) Notwithstanding subsections (2)(a) and (4)(a), a credit institution F67[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.<\/p>\n<p>(6) If a designated person knows or has reasonable grounds to believe that a beneficial owner F69[\u2026] connected with a customer or with a service sought by a customer, F68[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 F68[subsection (4)(a), (b) and (c)] in relation to the customer concerned.<\/p>\n<p>F67[(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\u2014<\/p>\n<p>(a) inform senior management before payout of policy proceeds, and<\/p>\n<p>(b) conduct enhanced scrutiny of the business relationship with the policy holder.]<\/p>\n<p>(7) For the purposes of F66[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\u2014<\/p>\n<p>(a) information in the possession of the designated person (whether obtained under subsections (1) to (3) or otherwise),<\/p>\n<p>(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<\/p>\n<p>(c) public knowledge,<\/p>\n<p>there are reasonable grounds for concluding that the designated person so knows.<\/p>\n<p>(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\u2014<\/p>\n<p>(a) shall discontinue the business relationship (if any) with the customer for so long as the failure continues, and<\/p>\n<p>(b) shall not provide the service or carry out the transaction sought by the customer for so long as the failure continues.<\/p>\n<p>(9) A 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>(10) In this section\u2014<\/p>\n<p>\u201cclose associate\u201d of a politically exposed person includes any of the following persons:<\/p>\n<p>(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;<\/p>\n<p>(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;<\/p>\n<p>\u201cimmediate family member\u201d of a politically exposed person includes any of the following persons:<\/p>\n<p>(a) any spouse of the politically exposed person;<\/p>\n<p>(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;<\/p>\n<p>(c) any child of the politically exposed person;<\/p>\n<p>(d) any spouse of a child of the politically exposed person;<\/p>\n<p>(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;<\/p>\n<p>(f) any parent of the politically exposed person;<\/p>\n<p>(g) any other family member of the politically exposed person who is of a prescribed class;<\/p>\n<p>\u201cpolitically exposed person\u201d means an individual who is, or has at any time in the preceding 12 months been, entrusted with a prominent public function, including F71[any of the following individuals] (but not including any middle ranking or more junior official):<\/p>\n<p>(a) a specified official;<\/p>\n<p>(b) a member of the administrative, management or supervisory body of a state-owned enterprise;<\/p>\n<p>F70[(c) any individual performing a prescribed function;]<\/p>\n<p>\u201cspecified official\u201d means any of the following officials (including any such officials in an institution of the European Communities or an international body):<\/p>\n<p>(a) a head of state, head of government, government minister or deputy or assistant government minister;<\/p>\n<p>(b) a member of a parliament F67[or of a similar legislative body];<\/p>\n<p>F67[(bb) a member of the governing body of a political party;]<\/p>\n<p>(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;<\/p>\n<p>(d) a member of a court of auditors or of the board of a central bank;<\/p>\n<p>F66[(e) an ambassador, charg\u00e9 d\u2019affairs or high-ranking officer in the armed forces;]<\/p>\n<p>F67[(f) a director, deputy director or member of the board of, or person performing the equivalent function in relation to, an international organisation.]<\/p>\n<p>(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 \u201cimmediate family member\u201d 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.<\/p>\n<p>F70[(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.<\/p>\n<p>(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.]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F66<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 16(a), (b), (d)(ii), (h), (i)(iii), S.I. No. 486 of 2018.<\/p>\n<p>F67<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 16(c), (e), (g), (i)(i), (ii), (iii), S.I. No. 486 of 2018.<\/p>\n<p>F68<br \/>\nSubstituted (14.06.2013) by Criminal Justice Act 2013 (19\/2013), s. 9, S.I. No. 196 of 2013.<\/p>\n<p>F69<br \/>\nDeleted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 16(d)(ii), (f), S.I. No. 486 of 2018.<\/p>\n<p>F70<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 10(a), (b)(ii), (c), S.I. No. 188 of 2021.<\/p>\n<p>F71<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 10(b)(i), S.I. No. 188 of 2021.<\/p>\n<h4>Enhanced customer due diligence \u2014 correspondent banking relationships.<\/h4>\n<p>F72[38.\u2014 (1) A credit institution or financial institution (&#8220;the institution&#8221;) shall not enter into a correspondent relationship F73[involving the execution of payments] with another credit institution or financial institution (&#8220;the respondent institution&#8221;) F74[\u2026] unless, prior to commencing the relationship, the institution\u2014<\/p>\n<p>(a) has gathered sufficient information about the respondent institution to understand fully the nature of the business of the respondent institution,<\/p>\n<p>(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,<\/p>\n<p>(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,<\/p>\n<p>(d) has ensured that approval has been obtained from the senior management of the institution,<\/p>\n<p>(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\u2014<\/p>\n<p>(i) the responsibilities of the institution arising under this Part, and<\/p>\n<p>(ii) any responsibilities of the respondent institution arising under requirements equivalent to those specified in the Fourth Money Laundering Directive,<\/p>\n<p>and<\/p>\n<p>(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\u2014<\/p>\n<p>(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,<\/p>\n<p>(ii) has applied measures equivalent to the measure referred to in section 35(1) in relation to those customers, and<\/p>\n<p>(iii) is applying measures equivalent to the measure referred to in section 35(3) in relation to those customers.<\/p>\n<p>(2) A person who 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>F72<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 17, 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>F73<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 11, S.I. No. 188 of 2021.<\/p>\n<p>F74<br \/>\nDeleted (28.02.2024) by Finance (State Guarantees, International Financial Institution Funds and Miscellaneous Provisions) Act 2024 (3\/224), s. 22, S.I. No. 69 of 2024, art. 2.<\/p>\n<p>F75[<\/p>\n<h4>Enhanced customer due diligence &#8211; high-risk third countries<\/h4>\n<p>38A.\u2014 F76[(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:<\/p>\n<p>(a) obtaining additional information on the customer and on the beneficial owner;<\/p>\n<p>(b) obtaining additional information on the intended nature of the business relationship;<\/p>\n<p>(c) obtaining information on the source of funds and source of wealth of the customer and of the beneficial owner;<\/p>\n<p>(d) obtaining information on the reasons for the intended or performed transactions;<\/p>\n<p>(e) obtaining the approval of senior management for establishing or continuing the business relationship;<\/p>\n<p>(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.]<\/p>\n<p>(2) Subsection (1) shall not apply where\u2014<\/p>\n<p>(a) the customer is a branch or majority-owned subsidiary of a designated person and is located in a high-risk third country,<\/p>\n<p>(b) the designated person referred to in paragraph (a) is established in a Member State, and<\/p>\n<p>(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.<\/p>\n<p>(3) In the circumstances specified in subsection (2), the designated person shall\u2014<\/p>\n<p>(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<\/p>\n<p>(b) apply customer due diligence measures specified in this Chapter to the extent reasonably warranted by the risk of money laundering or terrorist financing.<\/p>\n<p>(4) 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 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>F75<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 18, 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>F76<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 12, S.I. No. 188 of 2021.<\/p>\n<p>Editorial Notes:<\/p>\n<p>E24<br \/>\nThe section heading is taken from the amending section in the absence of one included in the amendment.<\/p>\n<p>F77[<\/p>\n<h4>Enhanced due diligence in cases of heightened risk<\/h4>\n<p>F78[39.\u2014 (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.<\/p>\n<p>(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.<\/p>\n<p>(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.<\/p>\n<p>(4) 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 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>F77<br \/>\nSubstituted (14.06.2013) by Criminal Justice Act 2013 (19\/2013), s. 10, S.I. No. 196 of 2013.<\/p>\n<p>F78<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 19, 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<h4>Reliance on other persons to carry out customer due diligence.<\/h4>\n<p>40.\u2014 (1) In this section, \u201crelevant third party\u201d means\u2014<\/p>\n<p>(a) a person, carrying on business as a designated person in the State\u2014<\/p>\n<p>(i) that is a credit institution,<\/p>\n<p>(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),<\/p>\n<p>(iii) who is an external accountant or auditor and who is also a member of a designated accountancy body,<\/p>\n<p>(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,<\/p>\n<p>(v) who is a relevant independent legal professional, or<\/p>\n<p>(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 F79[Central Bank of Ireland],<\/p>\n<p>(b) a person carrying on business in another Member State who is supervised or monitored for compliance with the requirements specified in F80[the Fourth Money Laundering Directive, in accordance with Section 2 of Chapter VI of that Directive] and is\u2014<\/p>\n<p>(i) a credit institution authorised to operate as a credit institution under the laws of the Member State,<\/p>\n<p>(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<\/p>\n<p>(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,<\/p>\n<p>F81[\u2026]<\/p>\n<p>(c) a person who carries on business in F80[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 F80[the Fourth Money Laundering Directive], and is\u2014<\/p>\n<p>(i) a credit institution authorised to operate as a credit institution under the laws of the place,<\/p>\n<p>(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<\/p>\n<p>(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 F80[the place, or]<\/p>\n<p>F82[(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\u2014<\/p>\n<p>(i) a credit institution authorised to operate as a credit institution under the laws of the place,<\/p>\n<p>(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<\/p>\n<p>(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.]<\/p>\n<p>F82[(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\u2014<\/p>\n<p>(a) the person and the designated person seeking to rely upon this section are part of the same group,<\/p>\n<p>(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<\/p>\n<p>(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.]<\/p>\n<p>(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.<\/p>\n<p>(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).<\/p>\n<p>(4) A designated person may rely on a relevant third party to apply a measure under section 33 or 35 (1) only if\u2014<\/p>\n<p>(a) there is an arrangement between the designated person (or, in the case of a designated person who is an employee, the designated person\u2019s 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<\/p>\n<p>(b) F80[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 F83[(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.<\/p>\n<p>(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.<\/p>\n<p>(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.<\/p>\n<p>(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.<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F79<br \/>\nSubstituted (1.10.2010) by Central Bank Reform Act 2010 (23\/2010), s. 15(14) and sch. 2 part 14 par. 33, S.I. No. 469 of 2010.<\/p>\n<p>F80<br \/>\nSubstituted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 20(a)(i), (iii), (c), S.I. No. 486 of 2018.<\/p>\n<p>F81<br \/>\nDeleted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 20(a)(ii), S.I. No. 486 of 2018.<\/p>\n<p>F82<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 20(a)(iv), (b), S.I. No. 486 of 2018.<\/p>\n<p>F83<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 13, S.I. No. 188 of 2021.<\/p>\n<p>F208[SCHEDULE 3<\/p>\n<h4>Non-exhaustive list of factors suggesting potentially lower risk<\/h4>\n<p>Section 34A<\/p>\n<p>(1) Customer risk factors:<\/p>\n<p>(a) public companies listed on a stock exchange and subject to disclosure requirements (either by stock exchange rules or through law or enforceable means), which impose requirements to ensure adequate transparency of beneficial ownership;<\/p>\n<p>(b) public administrations or enterprises;<\/p>\n<p>(c) customers that are resident in geographical areas of lower risk as set out in subparagraph (3).<\/p>\n<p>(2) Product, service, transaction or delivery channel risk factors:<\/p>\n<p>(a) life assurance policies for which the premium is low;<\/p>\n<p>(b) insurance policies for pension schemes if there is no early surrender option and the policy cannot be used as collateral;<\/p>\n<p>(c) a pension, superannuation or similar scheme that provides retirement benefits to employees, where contributions are made by way of deduction from wages, and the scheme rules do not permit the assignment of a member\u2019s interest under the scheme;<\/p>\n<p>(d) financial products or services that provide appropriately defined and limited services to certain types of customers, so as to increase access for financial inclusion purposes;<\/p>\n<p>(e) products where the risks of money laundering and terrorist financing are managed by other factors such as purse limits or transparency of ownership (e.g. certain types of electronic money).<\/p>\n<p>(3) F209[Geographical risk factors &#8211; registration, establishment, residence in:]<\/p>\n<p>(a) Member States;<\/p>\n<p>(b) third countries having effective anti-money laundering (AML) or combating financing of terrorism (CFT) systems;<\/p>\n<p>(c) third countries identified by credible sources as having a low level of corruption or other criminal activity;<\/p>\n<p>(d) third countries which, on the basis of credible sources such as mutual evaluations, detailed assessment reports or published follow-up reports, have requirements to combat money laundering and terrorist financing consistent with the revised Financial Action Task Force (FATF) recommendations and effectively implement these requirements.]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F208<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 38, S.I. No. 486 of 2018.<\/p>\n<p>F209<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 27, S.I. No. 188 of 2021.<\/p>\n<p>F210[SCHEDULE 4<\/p>\n<h4>Non-exhaustive list of factors suggesting potentially higher risk<\/h4>\n<p>Section 39<\/p>\n<p>(1) Customer risk factors:<\/p>\n<p>(a) the business relationship is conducted in unusual circumstances;<\/p>\n<p>(b) customers that are resident in geographical areas of higher risk as set out in subparagraph (3);<\/p>\n<p>(c) non-resident customers;<\/p>\n<p>(d) legal persons or arrangements that are personal asset-holding vehicles;<\/p>\n<p>(e) companies that have nominee shareholders or shares in bearer form;<\/p>\n<p>(f) businesses that are cash intensive;<\/p>\n<p>(g) the ownership structure of the company appears unusual or excessively complex given the nature of the company\u2019s F211[business;]<\/p>\n<p>F212[(h) the customer is a third country national who applies for residence rights or citizenship in the State in exchange for capital transfers, purchase of property or government bonds or investment in corporate entities in the State.]<\/p>\n<p>(2) Product, service, transaction or delivery channel risk factors:<\/p>\n<p>(a) private banking;<\/p>\n<p>(b) products or transactions that might favour anonymity;<\/p>\n<p>F211[(c) non face-to-face business relationships or transactions, without certain safeguards, such as electronic identification means, relevant trust services as defined in the Electronic Identification Regulation or any other secure, remote or electronic, identification process regulated, recognised, approved or accepted by the relevant national authorities;]<\/p>\n<p>(d) payment received from unknown or unassociated third parties;<\/p>\n<p>(e) new products and new business practices, including new delivery mechanism, and the use of new or developing technologies for both new and pre-existing F211[products;]<\/p>\n<p>F212[(f) transactions related to oil, arms, precious metals, tobacco products, cultural artefacts and other items of archaeological, historical, cultural and religious importance, or of rare or scientific value, as well as ivory and protected species.]<\/p>\n<p>(3) Geographical risk factors:<\/p>\n<p>(a) countries identified by credible sources, such as mutual evaluations, detailed assessment reports or published follow-up reports, as not having effective AML\/CFT systems;<\/p>\n<p>(b) countries identified by credible sources as having significant levels of corruption or other criminal activity;<\/p>\n<p>(c) countries subject to sanctions, embargos or similar measures issued by organisations such as, for example, the European Union or the United Nations;<\/p>\n<p>(d) countries (or geographical areas) providing funding or support for terrorist activities, or that have designated terrorist organisations operating within their country.]<\/p>\n<p>Annotations<\/p>\n<p>Amendments:<\/p>\n<p>F210<br \/>\nInserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26\/2018), s. 39, S.I. No. 486 of 2018.<\/p>\n<p>F211<br \/>\nSubstituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 28(a)(i), (b)(i), b(ii), S.I. No. 188 of 2021.<\/p>\n<p>F212<br \/>\nInserted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3\/2021), s. 28(a)(ii), (b)(iii), S.I. No. 188 of 2021.<\/p>\n<p>&nbsp;<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-20097\" data-postid=\"20097\" class=\"themify_builder_content themify_builder_content-20097 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Customer Due Diligence Customer due diligence obligations apply to customers of persons within the scope of the legislation. They apply prior to establishing a business relationship or carrying out an occasional transaction on behalf of the customer. 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