Ireland AML Law for Accountants: Criminal Justice Act 2010 Guide

If you are an accountant, auditor or tax adviser in Ireland, the law that governs your anti-money laundering (AML) duties is the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended. It is the Irish statute behind client due diligence, suspicious transaction reports, staff training and the offence of tipping off. This guide explains who counts as a "designated person", which body supervises accountants, and what the Act expects a firm to have in place. It draws on the Irish Statute Book, the Department of Justice, Chartered Accountants Ireland and CPA Ireland guidance. The Act has been amended several times, so always check the current consolidated text and your supervisor's latest guidance before you rely on any detail here. Nothing here is legal advice.

What the Act covers

The Act makes it an offence to engage in money laundering in the State. Section 7 describes the conduct, which includes concealing or disguising the true nature, source, location, movement or ownership of property that is the proceeds of criminal conduct, where the person knows or believes the property is such proceeds or is reckless as to whether it is. According to the consolidated text on the Law Reform Commission's revised acts site, the maximum penalty on indictment is 14 years' imprisonment.

Alongside the offence, the Act puts preventive duties on "designated persons". These duties are what most accountancy firms deal with day to day, and they sit in the middle of the Act: identification and verification of customers and beneficial owners (section 33), enhanced due diligence for politically exposed persons (section 37), reporting of suspicious transactions (section 42), tipping off (section 49), internal policies and procedures and training (section 54), and the keeping of records (section 55).

Who is a designated person?

Section 24 defines a "professional service provider" as an auditor, external accountant, tax adviser, relevant independent legal professional or trust or company service provider, and section 25 sets out who is a designated person. Chartered Accountants Ireland confirms that auditors, external accountants, tax advisers and trust or company service providers have statutory AML obligations.

CPA Ireland's 2018 guide for members explains that, for the purposes of section 25, an external accountant is a person who provides accountancy services by way of business, other than to the person's own employer, and that a professional qualification or membership of a body is not required. That guide is several years old, so check the current wording. The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 broadened the tax adviser definition and added letting agents, virtual currency service providers and high-value art dealers, according to Chartered Accountants Ireland.

In practice the test is what you do, not what you call yourself. An in-house accountant working only for their employer is outside the definition, while a sole trader who prepares accounts or tax returns for clients is inside it.

Who supervises accountants in Ireland?

Supervision depends on who you are. Chartered Accountants Ireland is a competent authority under the Act and its Professional Standards Department supervises its members' practising firms. Other accountancy bodies, including CPA Ireland, supervise their own members in the same way. The Central Bank of Ireland supervises financial and credit institutions. The Department of Justice's Anti-Money Laundering Compliance Unit acts as the competent authority for persons who are not supervised by another body, and its list of supervised sectors includes tax advisers and accountants who are not otherwise supervised, as well as trust or company service providers, high-value goods dealers and notaries.

If you are not sure which body is your competent authority, ask your professional body first. For a wider look at supervision across both jurisdictions, see our guide to AML supervision for accountancy firms in the UK and Ireland.

What a firm needs in place

• A risk-based approach. Work out where your firm and your clients could be exposed to money laundering or terrorist financing, and record how you reached your conclusions.
• Customer due diligence. Identify and verify each client and its beneficial owners before you act, and understand the purpose of the work. Section 33 is the starting point.
• Enhanced measures for higher risk. Section 37 deals with politically exposed persons, and other high-risk situations call for extra checks.
• Reporting. Where you know, suspect or have reasonable grounds to suspect money laundering or terrorist financing, you must report. CPA Ireland's guide says reports go to An Garda Síochána and the Revenue Commissioners. Check your supervisor's current instructions for how reports are submitted, because that guide dates from 2018.
• No tipping off. You must not disclose a report, or anything likely to prejudice an investigation, to the client or anyone else except the authorities. Section 49 covers this.
• Policies, procedures and training. Section 54 requires written internal policies and training for staff. Keep training records so that you can show them to your supervisor.
• Record keeping. Section 55 covers the records you must keep. Check the retention period in the current text of the Act and in your supervisor's guidance, because it is easy to misremember.

Do you need a money laundering reporting officer?

Chartered Accountants Ireland states that in Ireland appointing a money laundering reporting officer (MLRO) is not a legal requirement unless the competent authority asks for one, though it can be beneficial. In Northern Ireland, which falls under the UK Money Laundering Regulations 2017, a nominated officer is required. Firms that work on both sides of the border should therefore appoint one anyway. Our guide to the MLRO role in an accountancy firm sets out the duties.

Practical tips for a small firm

Keep the paperwork proportionate but real. Tailor the risk assessment to your own client mix and not a generic template, record why you rated each client as you did, check beneficial ownership against a source and note which one, and make sure every member of staff has been trained since they joined. A short, written procedure that matches how your firm actually works is better than a long template nobody reads. For a wider set of guides on this subject, start with our AML and KYC guides hub.

Frequently asked questions

Which Irish law sets AML duties for accountants?

The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended, including by the 2021 Amendment Act.

Are tax advisers and bookkeepers covered?

Yes, where they provide those services by way of business and are not employed by the client. The Act names tax advisers and external accountants as designated persons.

Is a reporting officer compulsory in Ireland?

Not unless your competent authority requires one, according to Chartered Accountants Ireland, although appointing one is good practice.

What is the maximum penalty for money laundering?

Under section 7, the maximum on indictment is 14 years' imprisonment, according to the consolidated text of the Act.

Is AML training required?

Section 54 requires internal policies, procedures and training. You can build your programme on our CPD courses and keep records of attendance.