Ireland -- AML/CFT Compliance Regulatory Overview

Virtual asset service providers (VASPs) and crypto-asset service providers (CASPs) in Ireland must comply with AML/CFT obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021, as amended by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021, which transposed the EU's Fifth Anti-Money Laundering Directive (5AMLD). These requirements apply to VASPs offering services like virtual currency exchange or custodian wallet provision, with additional alignment to EU rules such as the Wire and Crypto-asset Transfer Regulation (WCTR, Regulation (EU) 2023/1113), applicable from December 31, 2024[1][2][3].

Key AML/CFT Requirements

• Customer Due Diligence (CDD/KYC): VASPs must conduct CDD, including identifying customers, verifying identities, understanding transaction purposes, and assessing risks, as outlined in Part 4 of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021. This involves stricter KYC obligations like user identity verification and real-time monitoring, with no anonymous crypto transactions allowed[1][2][5].
• Suspicious Transaction Reporting: VASPs must monitor transactions for suspicious activity related to money laundering or terrorist financing and report to the relevant authorities, with enhanced mechanisms under WCTR empowering financial intelligence units to suspend suspicious crypto transfers[1][2][5].
• Record-Keeping Obligations: VASPs must maintain records of transactions, CDD, and monitoring to demonstrate compliance with AML/CFT rules[2].

Registration and Oversight

All VASPs established in Ireland must register with the Central Bank of Ireland for AML/CFT purposes before operating; new or non-Irish firms require prior registration. Approval hinges on effective AML/CFT policies, fit-and-proper management, and beneficial owners[2][3]. The Central Bank supervises compliance as the competent authority[1][2][3][4].

Regulatory Body: Central Bank of Ireland – https://www.centralbank.ie/regulation/anti-money-laundering-and-countering-the-financing-of-terrorism/virtual-asset-service-providers[3].

Note: Broader crypto regulation under MiCA (applicable to CASPs from December 30, 2024) reinforces these AML/CFT controls, with the Central Bank as National Competent Authority[1][4][6]. A proposed Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill may further align Irish law with EU updates[1].