The Front Page - Q&A: October 2017

Question

What is the latest update on the transposition of the Fourth Anti-Money Laundering Directive in relation to the beneficial ownership of trusts?

Answer

The Minister for Finance was recently asked why the State is not fully implementing EU anti-money laundering directive four in relation to the beneficial ownership of trusts; and if it will be fully implemented.

Minister for Finance (Deputy Paschal Donohoe) responded

"The EU’s Fourth Anti-Money Laundering Directive (4AMLD) includes a number of measures to combat money laundering and protect the integrity of the financial system, efforts to which Ireland is committed. More specifically, in relation to the beneficial ownership of trusts, Article 31 of the Directive contains an obligation on trustees of express trusts to obtain and hold information on the beneficial ownership of the trust, that is details of the person or persons who ultimately exercise ownership or control over the trust. It also requires trustees to make this information available to competent authorities and FIUs (Financial Intelligence Units) in a timely manner and to disclose this information to obliged entities in specific circumstances. The deadline set by the Commission for transposition was 26 June 2017. 

However, since the final text of 4AMLD was published the Commission has (July 2016) proposed amendments which were intended to make extensive changes to Article 31 of 4AMLD. We were awaiting the outcome of these negotiations so that they could be incorporated into our transposition. Unfortunately, discussions have not progressed sufficiently to facilitate this approach. For this reason and also due to the technical complexity of the measures and the need to engage with stakeholders to discuss an appropriate framework for the collection of this data, the transposition deadline has been passed. This is the case with many other member states who are also still progressing their transpositions. Having said this, work on transposing this directive is progressing and draft legislation to enact the requirements of Article 31 is with the Office of Parliamentary Counsel for their consideration".

For more information in relation to this topic please contact a member of the Asset Management & Investment Funds Team.

Date Published: 02 November 2017