The European Commission has initiated infringement proceedings against Ireland, along with two other EU countries, for improper enactment of a revised anti-money laundering directive. A formal notice letter has been sent to the State, necessitating a response within a two-month span.
Several mistakes in the incorporation of the fifth Anti-Money Laundering Directive into domestic law were pinpointed by the Commission in Ireland, France, and Latvia. As for Ireland, the existing system falls short in guaranteeing fullness and accuracy of data in the beneficial ownership register of trusts and the accessibility of these records.
France, likewise, has failed in securing the completeness of the national beneficial ownership records. The oversight with Latvia pertains to its Financial Intelligence Unit’s operation.
The Commission emphasises the importance of anti-money laundering regulations in combating money laundering and terrorist fund activities, highlighting the demand for more stringent EU-level regulations following recent money laundering scandals.
The Commission noted that “legislative voids in one member state impact the EU as a whole. As such, to fight crime and safeguard our financial system, it’s essential that EU laws are efficiently executed and monitored.”
Ireland, France, and Latvia have been provided two months to respond and address the issues raised by the Commission. Non-compliance or an inadequate response may result in a reasoned opinion being issued by the Commission.
In 2020, Ireland was fined €2 million by the European Union’s highest court for failing to implement anti-money laundering measures promptly.
Meanwhile, Ireland and five other EU countries, including Bulgaria, Estonia, Croatia, Slovenia, and Slovakia, were sent a reasoned opinion by the Commission. It urges these countries to incorporate a directive that rationalises certain procedures, such as public procurement and issuing permits, ahead of a trans-European transport network implementation into their national laws.