Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

Section 10 amends section 39 of the 2010 Act. It deals with the application of additional customer due diligence measures, the enhanced CDD the Senator mentioned, to a customer or beneficial owner where there is a high risk of money laundering or terrorist financing. The current legislative provisions provide for the option of applying enhanced CDD by the designated person. The amendment provides that enhanced CDD must be applied by the designated person where they have reasonable grounds to believe there is a heightened risk of money laundering or terrorist financing. That means where there are reasonable grounds to believe someone is laundering money or is engaged in terrorist financing, further checks are undertaken that are appropriate to the circumstances to ensure as best as it can be ensured that illegal activities are not being engaged in. What those are may vary depending on the background, circumstances and nature of the transaction. It may well include seeking information or asking the customer for information that may not be readily accessible to the bank and seeking its verification. It is reasonably straightforward. This is very important legislation designed to prevent money laundering and to ensure money is not being made available for terrorist financing that could result in the death or destruction of an individual or individuals.