Criminal Justice (Money Laundering and Terrorist Financing) Act 2010
F74[Enhanced customer due diligence - high-risk third countries
38A.— F75[(1) Subject to subsection (2), a designated person shall apply the following measures to manage and mitigate the risk of money laundering and terrorist financing additional to those specified in this chapter, when dealing with a customer established or residing in a high-risk third country:
(a) obtaining additional information on the customer and on the beneficial owner;
(b) obtaining additional information on the intended nature of the business relationship;
(c) obtaining information on the source of funds and source of wealth of the customer and of the beneficial owner;
(d) obtaining information on the reasons for the intended or performed transactions;
(e) obtaining the approval of senior management for establishing or continuing the business relationship;
(f) conducting enhanced monitoring of the business relationship by increasing the number and timing of controls applied and selecting patterns of transaction that need further examination.]
(2) Subsection (1) shall not apply where—
(a) the customer is a branch or majority-owned subsidiary of a designated person and is located in a high-risk third country,
(b) the designated person referred to in paragraph (a) is established in a Member State, and
(c) the branch or majority-owned subsidiary referred to in paragraph (a) is in compliance with the group-wide policies and procedures of the group of which it is a member adopted in accordance with Article 45 of the Fourth Money Laundering Directive.
(3) In the circumstances specified in subsection (2), the designated person shall—
(a) identify and assess the risk of money laundering or terrorist financing in relation to the business relationship or transaction concerned, having regard to section 30B, and
(b) apply customer due diligence measures specified in this Chapter to the extent reasonably warranted by the risk of money laundering or terrorist financing.
(4) A designated person who fails to comply with this section commits an offence and is liable—
(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months (or both), or
(b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 5 years (or both).]
Inserted (26.11.2018) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018 (26/2018), s. 18, S.I. No. 486 of 2018. A class A fine means a fine not greater than €5,000 as provided (4.01.2011) by Fines Act 2010 (8/2010), ss. 3, 4(1), S.I. No. 662 of 2010.
Substituted (23.04.2021) by Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (3/2021), s. 12, S.I. No. 188 of 2021.
The section heading is taken from the amending section in the absence of one included in the amendment.