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19/02/2010- Ireland’s implementation of EU’s AML 3rd Directive: one step closer.
Ireland’s Criminal Justice (Money laundering and Terrorist Financing) Bill (the “Bill”) aims to transpose the Third European Union Money Laundering Directive (2005/60/EC) (the “Directive”) into national law.
The Directive which came into force on 15 December 2005 required Member States to implement it by 15 December 2007. Ireland is one of three Member States that still has not fully implemented the Directive. Following the referral made by the European Commission to the European Court of Justice over non implementation of the Directive, the Court declared on 1 October 2009 that Ireland failed in its duty to transpose the Directive by 15 December 2007.
For a chart of all the Member States that have implemented the Directive click here.
The Bill was introduced in 2009 and was reviewed and passed in the Dáil Éireann (the House of Representative) on 17 February 2010. To see an outline of the process so far click here. In the Dáil Éireann a few amendments were proposed and discussions regarding the Civil Partnership Bill ensued. Several members of the Dáil Éireann expressed their support to the Bill.
Accordingly, Joe Carey (Clare, Fine Gael), stated that he
“[W]elcome[d] the belated transposition of this important EU directive into Irish law. It is critical that this country lives up to its responsibilities both internationally and nationally to prevent criminals living off the proceeds of crime. I regret that the Government did not act sooner which led to the delay in the Bill’s enactment”.
Also, Joanna Tuffy (Dublin Mid West, Labour) welcomed the Bill:
“[B]ecause it is part of the effort to tackle crime, particularly organised crime and money laundering. (…) It is important that the legislation is put in place given that crime has become increasingly sophisticated and makes large quantities of money. At the same time significant suffering is caused. One often hears the business community complain about there being too much regulation. On the other hand, in the light of recent problems, it is said that the reverse is the case. This type of legislation is necessary. We need to put regulations in place on how professionals deal with people and to ensure that they are cautious and do what they are supposed to do. The legislation is complex. I sympathise with those who must implement it. I worked briefly as a solicitor and I found all the rules and regulations in terms of accounts hard going. I have sympathy for the concerns on the Bill raised with the Minister and his staff by the professional bodies. I hope that dialogue will continue as the Bill progresses through the Seanad in case there are issues that could be addressed. While professionals must be conscious of all the regulations, at the same time business needs to be facilitated. People do not wish to lose business because they are implementing regulations, but at the same time the regulations have to be implemented. Two issues in particular were raised with me. There is a great deal of new legislation. Two Acts in particular require reports to be written, but the issues, which relate to money laundering, are similar. Perhaps there is a need to consolidate the legislation. The Minister might comment on that aspect. When the Bill is passed, but before it becomes active, time should be given to the professional bodies to train members in the application of the new legislation".
For an outline of the discussion in the Dáil Éireann click here.
The Bill will now go to the Seanad Éireann for review and the second to fifth stages of the bill implementation process will be repeated. The implementation process can be viewed here.
It will take some time before Ireland implements the Directive. The IBA will continue to monitor this development. Please visit us or subscribe to our RSS system in the homepage to learn about this and other news and updates.
Prepared by:
Patricia Adams
IBA Commercial Legal Intern
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19/02/2010- Iran seeks IMF help to draft AML/CFT law.
The Financial Action Task Force (FATF) added Iran to its blacklist of countries that pose risks to the international financial system. The FATF said in a statement that “[it] remains particularly concerned about Iran’s failure to address the risk of terrorist financing and the serious threat this poses to the integrity of the international financial system”.
Iran, thereafter, approached the International Monetary Fund for assistance. The IMF will assist Iran to draft a comprehensive AML/CFT law. The IBA will continue to monitor this development.
Please visit us or subscribe to our RSS system in the homepage to learn about this and other news and updates.
Prepared by:
P. Patricia Adams
IBA Commercial Legal Intern
Source:
Wroughton, Lesly, Iran asks IMF help with law against terror funding, Reuters, (last visited: 19/02/2010).
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19/02/2010- Qatar amending their AML Law
The Middle East and North African Financial Action Task Force (MENA-FATF) conducted a Mutual Evaluation of Qatar in 2008. The National Anti-Money Laundering and Terrorism Financing Committee (NAMLC) welcomed the recommendations made.
Although lawyers are currently covered by AML legislation in Qatar, one of the main recommendations made by the MENA-FATF concerned proper regulation of the legal profession. Specifically, client due diligence, suspicious transaction reports and tipping off provisions required strengthening.
Thereafter, the NAMLC committed to ensuring that Qatar’s AML/CFT framework meets all of the Financial Actions Task Force’s 40+9 Recommendations. The proposed AML/CFT law, now processing through the final stages of the legislative process is one of the changes being made by Qatar.
It is anticipated that the MENA-FATF recommendation regarding lawyers will be addressed in the proposed AML/CFT law. The IBA will continue to monitor this development.
For the IBA Anti-Money Laundering Forum’s template for Qatar, including a summary of the MENA-FATF Report, please click here.
Please visit us or subscribe to our RSS system in the homepage to learn about this and other news and updates.
Prepared by:
P. Patricia Adams
IBA Commercial Legal Intern
Source:
The Peninsula, Amended Anti-Money Laundering Law soon, (last visited 19/02/2010).
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05/02/2010- A Report from the US Senate’s Permanent Subcommittee on Investigations brings back the debate on lawyers and money laundering to this jurisdiction.
In a 330 page bipartisan report released by the Subcommittee, it was stated that attorneys have been used by politically exposed persons (PEPs) to launder money in the United States. The Report detailed four case stories.
Particularly, in one case two US lawyers allegedly helped Teodoro Obiang, son of the President of Equatorial Guinea, circumvent anti-money laundering and PEP controls at US banks by allowing him to secretly use a series of attorney-client, law office, and shell company accounts to be used as conduits for his funds.
The report noted that, contrary to the Financial Action Task Force’s Recommendations, attorneys were exempt from the US Patriot Act’s anti-money laundering provisions and that this made them susceptible to money launderers. As a result, the Report issued the following recommendations to strengthen the application of AML to legal professionals:
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Attorney-Client and Law Office Accounts. Treasury should issue an AML rule requiring US financial institutions to obtain a certification for each attorney-client and law office account that it will not be used to circumvent AML or PEP controls, accept suspect funds involving PEPs, conceal PEP activity, or provide banking services for PEPs previously excluded from the bank; and requiring enhanced monitoring of such accounts to detect and report suspicious transactions;
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Professional Guidelines. Professional organizations, including the American Bar Association, should issue guidance to their members prohibiting use of any financial account to accept suspect funds involving PEPs, conceal PEP activity, facilitate suspect transactions involving PEPs, or circumvent AML or PEP controls at US financial institutions.
On 4 February 2010, the Subcommittee hosted a hearing entitled “Keeping Foreign Corruption out of the United States: Four Case Histories” to examine the main findings of the Report. For further information regarding this hearing please click here.
We will continue monitoring this development. Please visit us or subscribe to our RSS system in the homepage to learn about this and other news and updates.
Prepared by:
Gonzalo Guzman
IBA Project Lawyer
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03/02/2010- Solomon Island’s AML Commission to collaborate with Stakeholders.
Solomon Island’s AML regime needs to conform to international standards. The AML Commission through dialogue with stakeholders is hoping to arrive at a consensus. Mr. Michael Ha’apio commented that the focus of the Money Laundering and Proceeds of Crime Amendment Bill will be on cash dealers.
In line with the Financial Actions Task Force’s 40+9 Recommendations, the definition of cash dealers will be expanded to include lawyers and accountants. Consequently, cash dealers will be required to report their dealings, especially when managing others finances and money, to the Financial Intelligence Unit.
We will continue monitoring this development. Please visit us or subscribe to our RSS system in the homepage to learn about this and other news and updates.
Prepared by:
P. Patricia Adams
IBA Commercial Legal Intern
Sources:
Anti-Money Laundering Commission to Meet Stakeholders, Solomon Times Online, 02/02/2010.
Government to Table 14 Bills in Parliament, National Parliament of Solomon Islands, 19/06/2010.
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