Ireland transposed the fifth Anti-Money Laundering Directive into Irish law by way of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 and the provisions of the 2021 Act, that relate to Virtual Asset Service Providers, commenced on 23 April 2021.
In order to provide a comprehensive response to the Deputy’s question, my officials consulted with the Central Bank and understand that the Central Bank web page relating to Virtual Asset Service Providers and details of their registration requirements, went live on 23 April 2021.
Furthermore, the Central Bank is currently engaging with a significant number of firms in relation to their registration applications, which are at varying stages of the application process. To date, no firms have been registered as Virtual Asset Service Providers (‘VASPs’) in Ireland. However once a firm has completed the process and has been approved, the VASP Register on the Central Bank’s web page will be updated.
Section 106D of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 (‘CJA 2010 to 2021’) outlines the scope of the Central Bank's supervision obligations in relation to VASPs.
I have been informed that the Central Bank adopts a robust, structured and risk-based process that seeks to ensure that only those applicants that demonstrate they are in a position to effectively comply with their AML/CFT obligations are registered. In order for the Central Bank to approve a VASP's application for AML/CFT registration, the Central Bank must be satisfied that the firm's AML/CFT policies and procedures are effective in combatting the money laundering and terrorist financing (ML/TF) risks associated with its business model. In addition, it must be satisfied that the firm's management and beneficial owners are fit and proper.
The Central Bank may refuse an application on any of the grounds set out in Section 106H(1) of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021.
The Ireland for Finance strategy was launched in 2019 and implementing its objectives is a commitment in the Programme for Government: Our Shared Future. The purpose of the Ireland for Finance strategy is the further development of Ireland's international financial services sector to 2025. The process of the registration of Virtual Asset Service Providers is a robust process that must be completed and as the providers complete the registration process, it will progressively aid in meeting the objectives of the strategy.
Direct employment is the primary metric used to assess the benefit to Ireland of the international financial services sector and of the Ireland for Finance strategy. The target set for the strategy is an increase of 5,000 jobs over the target set in the previous strategy, Ireland for Finance 2020 (IFS2020). At the end of 2021, employment in the sector is a record 52,800 people.
