Businesses that accept cash payments of €15,000 or more for goods

 
WHAT IS A DESIGNATED PERSON? High Value Goods (HVG) sector.    Any person or business trading that accepts cash payments for goods in the normal course of business may be considered to be a "designated person"  and subject to the new controls imposed by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.  This sector is diverse and covers businesses from antique dealers, boat and car sales to dealers in precious stones and jewellers.  For ease of reference the sector is referred to as the High Value Goods (HVG) sector.

Any person trading in goods, but only in respect of transactions involving payments, to the person in cash, of a total of at least €15,000 (whether in one transaction or in a series of transactions that are or appear to be linked to each other). Section 25.—(1) of the Act defines a designated person.

 

Information Booklet : High Value Goods Dealers >>  AMLCU INFOSHEET 3  

 

 About the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

The Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010 introduces important changes to the law for certain businesses including persons trading that accept cash payments for goods in the normal course of business.  This sector is diverse and covers businesses from antique dealers, boat and car sales to dealers in precious stones and jewellers.  For ease of reference the sector is referred to as the High Value Goods (HVG) sector.

The Act strengthens Ireland's legislative provisions for the prevention of money laundering and terrorist financing in line with the 3rd EU Money Laundering Directive. The Act is applicable to a number of businesses in the financial sector as well as lawyers, notaries, accountants, estate agents, private members gaming clubs and trust or company service providers. Its scope also encompasses all providers of goods, when payments are made to the provider of the goods in cash in excess of €15,000 whether in one transaction or in a series of transactions that are or appear to be linked to each other.

The legislation places a number of obligations on certain businesses to guard against their businesses being used for money laundering or terrorist financing purposes.  It contains requirements to identify customers, to report suspicious transactions to An Garda Síochána and the Revenue Commissioners and to have specific procedures in place to provide to the fullest extent possible for the prevention of money laundering and terrorist financing. These procedures relate to recordkeeping, staff training and the maintenance of appropriate procedures and controls pertaining to the obligations imposed by the Directive.

High Value Goods dealers are already subject to anti-money laundering requirements under Irish law. The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 increases the obligations on the designated persons in relation to money laundering and terrorist financing

 

A significant change introduced in this Act is the requirement for the designated persons covered to undertake specific effective customer due diligence measures at the outset of a business relationship and certain other measures during the course of the business relationship.

 

 

The key features of the Legislation are as follows:

  • The obligation on designated persons to apply Customer Due Diligence (CDD) procedures to their customers in specific circumstances, which not only require the initial identification and verification of identity, but also require the ongoing monitoring of the business relationship with customers for suspicions of money laundering and terrorist financing;
  • The obligation to also identify and take risk based and adequate measures to verify where applicable the beneficial owners of customers;
  • The application of the CDD obligations on a risk based approach to provide for better allocation of resources in the fight against money laundering and the financing of terrorism;
  • In line with the risk based approach, the Legislation sets down when both enhanced and simplified customer due diligence procedures should be applied to specified customer types;
  • Designated persons are permitted to rely on third parties to meet the CDD requirements with the exception of the obligation for ongoing monitoring of the business relationship. However, ultimate responsibility for ensuring compliance with the full CDD obligation still resides with the designated person which relies on a third party;
  • Designated persons covered by the Legislation are obliged to promptly report suspicions of money laundering or terrorist financing to the Gardaí and Revenue Commissioners. 
  • Directions relating to investigations;
  • Monitoring by the competent authority; and
  • Finally, obligations on designated persons in relation to recordkeeping, staff training and the maintenance of appropriate procedures and controls pertaining to the obligations imposed by the Legislation.

Businesses may be subject to a compliance monitoring inspection by an authorised officer of the AMLCU at any time and businesses will be requested shortly to confirm that they are in full compliance with their obligations.

What are the obligations for designated businesses?  

You must familiarise yourself with the full requirements placed on designated persons by the Act. Some general advice is available on this site under the High Value Goods Dealers FAQs 

In summary the Act contains requirements on the part of designated bodies covered by the legislation to:

  • Identify customers and to undertake Customer Due Diligence in business dealings,
  • To report suspicious transactions to An Garda Síochána and the Revenue Commissioners, and
  • To have specific procedures in place to provide to the fullest extent possible for the prevention of money laundering and terrorist financing.
  • These procedures relate to record keeping, staff training and the maintenance of appropriate procedures and controls pertaining to the obligations imposed by the Directive.
     

Who will monitor compliance?

Dealers in high value goods (that is, those who receive cash payments for goods of €15,000 or more) will be monitored for the purposes of compliance with the Act, by the Department of Justice and Equality's Anti-Money Laundering Compliance Unit. High Value Goods Dealers may include any business that trades in goods and covers people such as car and boat dealers, jewellers, art and antique dealers and others.