EU and International
The European Supervisory Authorities (ESAs)
The ESAs consist of the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA).
A part of the ESAs' mandate is the fostering of a consistent and effective approach to Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT) by both credit and financial institutions, as well as by AML/CFT supervisors.
Under Regulations (EU) No. 1093/2010,1094/2010 and 1095/2010 of the European Parliament and of the Council (the ESA Regulations) part of the ESAs mandate is to provide Regulatory Technical Standards, Guidelines / Recommendations and Opinions to the extent that the acts referred to within the ESA Regulations apply to credit and financial institutions, and the competent authorities that supervise them within relevant parts of the Fourth EU Money Laundering Directive (Directive 2015/8849/EC).
Since January 2020, the EBA has been leading, coordinating and monitoring the AML/CFT efforts of all financial services providers and competent authorities in the EU. The EBA also has a legal duty to contribute to preventing the use of the financial system for ML/TF purposes.
Under the new EU AML/CFT Package, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will directly supervise cross-border credit and financial institutions exposed to the highest money laundering and terrorist financing (ML/TF) risk. It will also draft AML/CFT standards and guidelines, oversee AML/CFT supervisors, and coordinate Financial Intelligence Units (FIUs). In accordance with Article 103 and 108 of Regulation (EU) 2024/1620 (the AMLA Regulation), the EBA will transfer its AML/CFT mandates, powers and resources to AMLA by the end of 2025.
The EBA will retain its AML/CFT powers and mandates until December 2025 to minimise disruption and provide continuity, and it will also continue working closely with AMLA going forward. After transferring the powers that are specific to AML/CFT to AMLA, the EBA will remain responsible for addressing ML/TF risk across its prudential remit.
Further information on the EBA’s future role is available on its website here.
Regulatory Technical Standards
Regulatory Technical Standards (RTS) are Level 2 measures developed by the ESAs, which are adopted by the European Commission as delegated acts. The purpose of RTS is to ensure the consistent harmonisation of the areas of the financial market that fall within the scope of the legislative acts referred to in the ESA Regulations. RTS must be technical and cannot contain any strategic decisions or policy choices and are limited in content by the legislative act on which they are based. They are also mandatory in nature and designated persons are obliged to comply with them. Links to relevant RTS applicable to designated persons have been provided below:
Guidelines and Recommendations
Guidelines and Recommendations are Level 3 measures, which are issued by the ESAs to competent authorities and financial institutions. The purpose of Guidelines and Recommendations is to create consistent, efficient and effective supervisory practices and ensure common, uniform and consistent application of EU law. Competent authorities and financial institutions must make every effort to comply with Guidelines and Recommendations. Where a competent authority does not comply or does not intend to comply with a Guideline or Recommendation, it must notify the respective ESA, stating its reasons, within two months of the issuance of the Guideline or Recommendation on a "comply or explain" basis. Links to relevant EBA Guidelines and Recommendations applicable to designated persons have been provided below:
Opinions
The ESAs can also issue an opinion in accordance with the ESA Regulations. Competent authorities and financial institutions are encouraged to take on board the factors identified in individual opinions. Links to relevant opinions applicable to designated persons have been provided below:
Reports
Under the ESA Regulations, the EBA is required, inter alia, to monitor and assess market developments, monitor new and existing financial activities and contribute to protecting the EU’s financial system against money laundering and terrorist financing. Article 9a(5) of Regulation (EU) 1093/2010 mandates the EBA to perform risk assessments on significant ML/TF risks affecting the EU’s financial sector. Links to relevant reports applicable to designated persons have been provided below:
EU AML/CFT Policy Development
As a member of the ESAs the Central Bank is actively involved in European AML/CFT regulatory and policy development and cooperates with other EU AML/CFT supervisors. Representatives from the Central Bank regularly attend the EBA’s Standing Committee on AML/ CFT (AMLSC), which brings together senior representatives from AML/CFT competent authorities across all financial services sectors. The AMLSC coordinates measures to prevent and counter the use of the financial system for the purposes of ML/TF.
European Commission AML Legislative Package 2021
Following on from its AML/CFT Action Plan of 7 May 2020, in July 2021 the European Commission published its package of legislative proposals to strengthen the EU’s AML/CFT rules.
On 19 June 2024, the legislative package was published in the Official Journal of the European Union. It consists of the AMLA Regulation, Regulation (EU) 2024/1624 establishing a single AML/CFT Rulebook (the AML Regulation), and a new Directive (EU) 2024/1640 (6AMLD).
The AML Regulation will become directly applicable across all Member States from July 2027. Member States have three years to transpose most provisions of 6AMLD, but certain provisions must be transposed by a shorter deadline of two years.
AMLA was legally established in June 2024 and is expected to commence activities in mid-2025, be fully staffed in 2027, and commence direct supervision of certain high-risk financial entities in 2028.
Finally, the recast Funds Transfer Regulation (2023/1113), inter alia, extends the scope of Regulation 2015/847 to cover transfers of crypto-assets. The recast FTR, which will become effective in December 2024, lays down rules on the information that must accompany transfers of funds and on the information on originators and beneficiaries accompanying transfers of crypto assets. It also lays down rules on internal policies, procedures and controls regarding the implementation of restrictive measures.
Financial Action Task Force (FATF) and Ireland
What is the FATF?
The Financial Action Task Force (FATF) is a policy-making organisation that leads the international fight against money laundering and terrorist financing. In response to the growing concern about money laundering at both the domestic and international levels, the G-7 established the FATF in 1989.
The objectives of the FATF are to set international standards for combating money laundering and terrorist financing and to promote the effective implementation of these standards into the legal, supervisory and regulatory frameworks of its members. The FATF's standards are embodied in its 40 Recommendations, which were updated in 2012, and deal with money laundering, terrorist financing and targeted financial sanctions for terrorism and proliferation.
Please see the FATF website for more information.
Outcomes from FATF Plenary
Outcomes from FATF Week - October 2024 are available on FATF's website. Outcomes relating to high-risk and other monitored jurisdictions are available below. Credit and financial institutions should refer to the FATF website for any changes to these lists when assessing the risks associated with the effectiveness of a jurisdiction’s AML/CFT regime.
Jurisdictions under Increased Monitoring – Addition of Algeria, Angola, Côte d’Ivoire and Lebanon
Jurisdictions under increased monitoring are actively working with the FATF to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timelines. At the October 2024 Plenary, the FATF added Algeria, Angola, Côte d’Ivoire and Lebanon to the list of jurisdictions subject to increased monitoring.
Jurisdictions no Longer under Increased Monitoring – Removal of Senegal
The FATF congratulated Senegal for its significant progress in addressing the strategic AML/CFT/CPF deficiencies previously identified during its mutual evaluations. Senegal has completed its Action Plans to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process.
Senegal will continue to work with the FATF and the relevant FATF-Style Regional Body of which it is a member to continue strengthening its AML/CFT/CPF regime.
Jurisdictions subject to a call for action
FATF identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. These jurisdictions are subject to a call for action to protect the international financial system.
The FATF reiterated its concerns over the Democratic People’s Republic of Korea’s (DPRK) continued failure to address the significant deficiencies in its AML/CFT regime and the serious threats posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction and it’s financing. As noted in February 2024, the DPRK has increased connectivity with the international financial system, which raises proliferation financing risks. The FATF calls for greater vigilance and renewed implementation and enforcement of countermeasures against the DPRK. The FATF also urges countries to adequately assess and account for the increased proliferation financing risk with the greater financial connectivity reported, particularly since the next round of assessments requires countries to adequately assess proliferation financing risks under the FATF Standards.
High-Risk Jurisdictions subject to a Call for Action – 25 October 2024
Outcomes from FATF Week - June 2024 are available on FATF's website. Outcomes relating to high-risk and other monitored jurisdictions are available below. Credit and financial institutions should refer to the FATF website for any changes to these lists when assessing the risks associated with the effectiveness of a jurisdiction’s AML/CFT regime.
Jurisdictions under Increased Monitoring – Addition of Monaco and Venezuela
Jurisdictions under increased monitoring are actively working with the FATF to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timelines. At the June 2024 Plenary, the FATF added Monaco and Venezuela to the list of jurisdictions subject to increased monitoring.
Jurisdictions no Longer under Increased Monitoring – Removal of Jamaica and Türkiye
The FATF congratulated Jamaica and Türkiye for their significant progress in addressing the strategic AML/CFT deficiencies previously identified during their mutual evaluations. They have completed their Action Plans to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process.
Jamaica and Türkiye will continue to work with the FATF and the relevant FATF-Style Regional Body of which it is a member to continue strengthening its AML/CFT/CPF regime.
Jurisdictions subject to a call for action
FATF identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. These jurisdictions are subject to a call for action to protect the international financial system.
The FATF reiterated its concerns over the Democratic People’s Republic of Korea’s (DPRK) continued failure to address the significant deficiencies in its AML/CFT regime and the serious threats posed by the DPRK’s illicit activities related to the proliferation of weapons of mass destruction and its financing. In particular, the FATF notes that the DPRK has increased connectivity with the international financial system, which raises proliferation financing risks. Therefore, the FATF calls for greater vigilance and renewed implementation and enforcement of countermeasures against the DPRK.
Outcomes from FATF Week – February 2024 are available on the FATF’s website. Outcomes relating to high-risk and other monitored jurisdictions are available below. Credit and financial institutions should refer to the FATF website for any changes to these lists when assessing the risks associated with the effectiveness of a jurisdiction’s AML/CFT regime.
Jurisdictions under Increased Monitoring - Addition of Kenya and Namibia
Jurisdictions under increased monitoring are actively working with the FATF to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes. At this Plenary, the FATF added Kenya and Namibia to the list of jurisdictions subject to increased monitoring.
Jurisdictions no Longer under Increased Monitoring – Removal of Barbados, Gibraltar, Uganda and the United Arab Emirates
The FATF congratulated Barbados, Gibratar, Uganda and the United Arab Emirates for their significant progress in addressing the strategic AML/CFT deficiencies previously identified during their mutual evaluations. These jurisdictions had committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes. These countries will no longer be subject to the FATF’s increased monitoring process.
This comes after a successful on-site visit to each of these countries. Each country will work with the FATF-Style Regional Body, of which it is a member, to continue strengthening their AML/CFT/CPF regimes.
Jurisdictions subject to a call for action
FATF identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. These jurisdictions are subject to a call for action to protect the international financial system. No new countries/jurisdictions were added to this list.
• High-Risk Jurisdictions subject to a Call for Action – 23 February 2024
Outcomes from FATF Week – October 2023 are available on the FATF’s website. Outcomes relating to high-risk and other monitored jurisdictions are available below. Credit and financial institutions should refer to the FATF website for any changes to these lists when assessing the risks associated with the effectiveness of a jurisdiction’s AML/CFT regime.
Jurisdictions under Increased Monitoring - Addition of Bulgaria
Jurisdictions under increased monitoring are actively working with the FATF to address the strategic deficiencies in their regimes to counter money laundering, terrorist financing and proliferation financing. When the FATF places a jurisdiction under increased monitoring, it means the country has committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes. At this Plenary, the FATF added Bulgaria to the list of jurisdictions subject to increased monitoring.
Jurisdictions no Longer under Increased Monitoring - Removal of Albania, Cayman Islands, Jordan and Panama
The FATF plenary congratulated Albania, the Cayman Islands, Jordan and Panama for their significant progress in addressing the strategic AML/CFT deficiencies previously identified during their mutual evaluations. These jurisdictions had committed to implement an Action Plan to resolve swiftly the identified strategic deficiencies within agreed timeframes. These countries will no longer be subject to the FATF’s increased monitoring process.
This comes after a successful on-site visit to each of these countries. Each country will work with the FATF-Style Regional Body, of which it is a member, to continue strengthening their AML/CFT/CPF regimes.
Jurisdictions subject to a call for action
FATF identifies countries or jurisdictions with serious strategic deficiencies to counter money laundering, terrorist financing, and proliferation financing. These jurisdictions are subject to a call for action to protect the international financial system. No new countries/jurisdictions were added to this list.
FATF Mutual Evaluation Reviews (MER)
The FATF regularly monitors the progress of its members in implementing its Recommendations through the Mutual Evaluation process. This process consists of a peer review of each member, which provides a detailed description and analysis of their Anti-Money Laundering and Countering the Financing of Terrorism (AML / CFT) framework present in their legislative, regulatory and supervisory apparatus. The findings of the examiners are then discussed at the next plenary and adopted in a Mutual Evaluation report (MER). In 2024, the FATF commenced its fifth round of MERs.
Ireland and the FATF
Ireland joined the FATF in 1991. The last MER of Ireland was carried out by the FATF as part of its Fourth Round of Mutual Evaluations and the outcomes were discussed at the plenary meeting held in June 2017. On the whole, Ireland received a broadly positive review with certain areas commended such as the legislative framework underpinning Ireland’s anti-money laundering (AML) and counter-terrorist financing regime and the role of the Central Bank in the performance of its supervisory responsibilities as a Competent Authority. However, a number of priority actions for improvement were identified which will required remediation as part of the follow-up process.
Links to the FATF's Reports on Ireland's AML Regime:
International Monetary Fund (IMF)
Ireland has been a member of the International Monetary Fund (IMF) since 1957 and its financial sector has been deemed by the IMF to be one of 29 jurisdictions with a systemically important financial sector. As such Ireland is subject to financial stability assessments under the Financial Sector Assessment Program (FSAP) which take place approximately every five years.
The FSAP is a detailed assessment of a country's financial sector examining the resilience of the financial sector, the adequacy of the regulatory and supervisory framework and the ability to manage and resolve financial crises.
As part of most recent FSAP conducted by the IMF in June 2016, review of Ireland's AML / CFT regime formed part of the “Financial Sector Oversight” section of the report. View a copy of the report.
Ireland is also subject to periodic review of its AML / CFT regime by way of ROSCs (Reports on the Observance of Standards and Codes conducted by the IMF in conjunction with FATF. Please see links below to ROSCs conducted in Ireland: