Louise O'Reilly (Dublin Fingal, Sinn Fein)
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433. To ask the Tánaiste and Minister for Justice and Equality the status of Ireland's implementation of EU anti-money laundering rules; if the State is subject to any ongoing legal actions by the EU Commission regarding delays in implementation; the fines paid to date by Ireland in the past five years due to a failure to implement or delay in implementation of EU anti-money laundering legislation; and if she will make a statement on the matter. [36515/21]

James Browne (Wexford, Fianna Fail)
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The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 transposes the criminal justice elements and several non-criminal justice elements of the Fifth EU Anti-Money Laundering Directive. This Act was signed by the President on 18 March 2021 and came into effect on 23-24 April 2021.

This Directive builds upon the Fourth Anti-Money Laundering Directive to better equip the Union to prevent the financial system from being used for money laundering and terrorist financing.

As the Deputy may be aware, this Act ensures that our regulatory framework keeps pace with the increasing integration of financial flows in the internal market, the evolving trends, technological developments and the prevention of organised crime. It enhances the range of measures countering money laundering by reflecting modern developments. It will also help to bring us in line with our EU obligations.

While the Act transposes many of the elements of the Fifth Anti-Money Laundering Directive, the Department of Finance is also engaged in giving effect to other provisions of the Directive. The Department of Finance is currently progressing elements of the transposition including with respect to the centralised bank account registry. I am advised that a central register of trusts, required under Article 31 of the Directive was established in April 2021. This register is operated by the Revenue Commissioners and will begin to accept filings in the coming months. A central register of bank and payment accounts and safe-deposit boxes under Article 32a, which will be operated by the Central Bank of Ireland, is currently being progressed.

The EU Commission issued a Letter of Formal Notice on 14 May 2020, which is the first stage of infringement proceedings. Ireland had four months to reply, which it did in September 2020. The second stage would be the issue of a Reasoned Opinion, and only at the third stage (a reference to the Court of Justice) would possible financial penalties be applicable.

Ireland has informed the Commission of the significant progress made in transposing this instrument into Irish law. The Commission received comprehensive detail regarding the various national provisions which transpose or will transpose each of the provisions of the Directive including the text of the Act.

Ireland will continue to engage with the Commission and keep the Commission informed of our progress in transposing the Fifth Directive.

The Deputy will be aware that in 2020, Ireland was ordered by the Court of Justice of the European Union to pay a fine of €2m in respect of its failure to fully transpose the previous Directive (the Fourth Anti-Money Laundering Directive) on time. The Court’s decision related to a period between July 2017 and the enactment of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act in November 2018.