Solicitors (Money Laundering and Terrorist Financing Regulations) 2020.
Statutory Instruments
Source: Statutory Instruments

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paragraphs: (1) These Regulations may be cited as the Solicitors (Money Laundering and Terrorist Financing Regulations) 2020.
(2) These Regulations come into operation on 1 November 2020.
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paragraphs: In these Regulations-
(a) the Solicitors Accounts Regulations 2001 to 2013,
(b) the Solicitors Accounts Regulations 2014 ( S.I. No. 516 of 2014 ), and
(c) any other regulations made by the Society under section 66 of the Act or under section 73 of the Act of 1994.
(a) moneys received, held or controlled by a solicitor in respect of which he or she is a controlling trustee or a non-controlling trustee,
(b) moneys to which the only person entitled is the solicitor himself or herself or, in the case of a firm of solicitors, one or more of the partners in the firm,
(c) moneys placed on joint deposit account or joint deposit receipt other than where the payees are all solicitors practising in the same solicitors’ practice,
(d) (save as provided for under Regulation 8(2)(a) and (3)(b) of the Accounts Regulations and without prejudice to the generality of the liability of a solicitor pursuant to the provisions of section 73 of the Act of 1994 and regulations made thereunder) interest received by a solicitor on clients’ moneys held by the solicitor on account of his or her clients generally on an interest-bearing “general client account” as defined in Regulation 8(1) of the Accounts Regulations, or
(e) moneys received, held or controlled by a personal insolvency practitioner in accordance with an insolvency arrangement;
(a) a credit institution within the meaning of point (1) of Article 4(1) of the Capital Requirements Regulation, or
(b) An Post in respect of any activity that it carries out, whether as principal or agent, that would render it, or a principal for whom it is an agent, a credit institution as a result of the application of paragraph (a);
(a) scrutinising transactions, and the source of wealth or of funds for those transactions, undertaken during the relationship in order to determine if the transactions are consistent with the solicitor’s knowledge of-
(i) the client,
(ii) the clients business and pattern of transactions, and
(iii) the clients risk profile (as determined under Regulation 7), and
(b) ensuring that documents, data and information on customers are kept up to date in accordance with his or her internal policies, controls and procedures adopted in accordance with Regulation 5;
(a) the solicitor does not have a business relationship with the client, and
(b) in a case where the transaction concerned consists of a transfer of funds (within the meaning of Article 3(9) of Regulation (EU) 2015/847 of the European Parliament and of the Council of 20 May 20152 ), the amount of money to be transferred is in aggregate not less than €1,000;
(a) the provision of assistance in the planning or execution of transactions for clients concerning any of the following:
(i) buying or selling land or business entities including, without limitation, conveyancing services;
(ii) managing the money, securities or other assets of clients;
(iii) opening or managing bank, savings or securities accounts;
(iv) organising contributions necessary for the creation, operation or management of companies;
(v) creating, operating or managing trusts, companies or similar structures or arrangements;
(b) acting for or on behalf of clients in financial transactions or transactions relating to land:
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paragraphs: (1) These Regulations apply to a solicitor who is a relevant independent legal professional, in the course of and arising from his or her practice as a solicitor, engaged in the provision of legal services, whether as a sole practitioner or as a partner in a firm of solicitors and shall, for the avoidance of doubt, apply to a solicitor carrying on practice as a personal insolvency practitioner.
(2) Wherever in these Regulations an obligation is specified as being that of a solicitor, such obligation of the solicitor shall be a personal one notwithstanding that the solicitor may have caused some other person or persons to perform the act or function comprising such obligation; and it shall be assumed unless and until the contrary be shown to the satisfaction of the Society that such other person or persons had the express or implied authority of the solicitor to perform such act or function.
(3) These Regulations shall not apply to-
(a) a solicitor in the full-time service of the State within the meaning of section 54(3) (as substituted by section 62 of the Act of 1994) of the Act, or
(b) a solicitor who is in the part-time service of the State, in respect of moneys received, held, controlled or paid by him or her in the course of such service.
(4) A solicitor to whom paragraph (3) applies at the time he or she applies to the Society for a practising certificate for a practice year shall be required to notify the Society if at any time during that practice year he or she proposes to change to being a solicitor to whom paragraph (1) applies; such notification to the Society to be made in writing not later than fourteen days prior to such change taking place.
(5) Where the Society deems it appropriate in any particular circumstances, the Society may require a solicitor who represents to the Society that he or she is a solicitor to whom these Regulations do not or should not apply, to verify such representation by means of a statutory declaration or in such other formal manner as the Society may direct; provided that the Society may, in addition, conduct its own investigation in order to confirm the veracity of any such representation.
(6) Each partner in a firm of solicitors shall be responsible for securing compliance by the firm with these Regulations.
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paragraphs: (1) Where it appears to the Society, whether as a result of a complaint or otherwise, that it is necessary, for the purpose of investigating whether there has been due compliance by a solicitor with these Regulations or the Act of 2010, or otherwise for the purpose of exercising any of the Society’s functions under these Regulations, the Society may appoint an authorised person and instruct him or her to attend, with or without prior notice, at the place or places of business of the solicitor, and the authorised person may so attend at such place or places for that purpose.
(2) Notwithstanding paragraph (1), the Society may agree to an investigation under that paragraph taking place, or may require such investigation to take place, at a place or places other than the place or places of business of a solicitor.
(3) An authorised person who attends pursuant to paragraph (1) at the place or places of business of a solicitor, or at such other place as may be agreed or required pursuant to paragraph (2), shall inform the solicitor or any partner, employee or agent of the solicitor of the purpose of the attendance and may, in pursuance of that purpose, require the solicitor or any partner, employee or agent of the solicitor to do any one or more of the following things:
(a) to make available to the authorised person for inspection all or any part of the solicitor’s records at such time and place fixed by the Society;
(b) to furnish to the authorised person such copies of the solicitor’s records as the authorised person deems necessary to fulfil the purpose specified in paragraph (1) (whether or not such records or any of them relate also to other matters);
(c) to give to the authorised person such written authority addressed to such bank or banks as the authorised person requires to enable the authorised person to inspect any account or accounts opened, or caused to be opened, by the solicitor at such bank or banks (or any documents relating thereto) and to obtain from such bank or banks copies of such documents relating to such account or accounts for such period or periods as the authorised person deems necessary to fulfil the purpose specified in paragraph (1).
(4) If a solicitor or the partner, employee or agent of the solicitor, who is required to make available records to an authorised person for inspection under paragraph (3), refuses, neglects or otherwise fails without reasonable cause to duly comply with such requirement, the Society may, on notice to the solicitor, apply to the High Court for an order requiring the solicitor to make available for inspection at his or her place or places of business such records as the Society (including the authorised officer) deem necessary for the purpose specified in paragraph (1) or as the court thinks fit.
(5) An authorised person who attends pursuant to paragraph (1) at the place or places of business of a solicitor shall be afforded by the solicitor (at the solicitor’s expense) such facilities at such place or places of business to conduct his or her investigation as are reasonable and appropriate in the circumstances, including accommodation with desk or table and chair or chairs (whether or not in a room separate from other persons) and photocopying facilities.
(6) Where, arising from an investigation by an authorised person pursuant to this Regulation, it is considered by the Society-
(a) that a report prepared by the authorised person discloses evidence of a material breach of these Regulations by the solicitor concerned or other misconduct by the solicitor as disclosed by his or her records, the Society may conduct such further investigations or make such further enquiries as the Society deems necessary in the circumstances,
(b) that the solicitor should be required to attend at the Society’s premises (or elsewhere within the State) for interview by the Society, the Society may so require the solicitor to attend; provided that, where the solicitor is to be interviewed in relation to matters contained in a report or reports of an authorised person, the solicitor shall be furnished with a copy of such report or reports in advance of such attendance, and the solicitor may attend such interview accompanied by another solicitor, by counsel or by his or her reporting accountant (or two or more of them), as the solicitor may deem fit,
(c) that there has been a material breach of these Regulations by the solicitor concerned or that there has been other misconduct by the solicitor disclosed by his or her records (or both), the Society may apply to the Legal Practitioners Disciplinary Tribunal for an inquiry into the conduct of the solicitor on the ground of alleged misconduct pursuant to section 14A(6) (inserted by section 198 of the Legal Services Regulation Act 2015 (No. 65 of 2015)) of the Act of 1994, or where applicable it may apply to the Solicitors Disciplinary Tribunal for an inquiry under section 7 (as substituted by section 17 of the Act of 1994) of the Act of 1960.
(d) (whether or not the Society decides to make application to the Legal Practitioners Disciplinary Tribunal or the Solicitors Disciplinary Tribunal in the particular case) that there has been such a material breach of these Regulations by the solicitor concerned or such other misconduct by the solicitor as disclosed by his or her records (or both), the Society shall require the solicitor to pay to the Society an amount, determined as appropriate by the Society, taking into account the nature and extent of the investigation, the preparation of a report or reports thereon, the further enquiries arising therefrom and any interview or interviews conducted by the Society consequential thereon.
(7) The Society may investigate the alleged breach by a solicitor of these Regulations and, to that end, may in respect of the solicitor concerned give directions to the solicitor.
(8) The Society may at any time terminate the authority of an authorised person and appoint another authorised person to carry out or complete an investigation pursuant to this Regulation.
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paragraphs: (1) A solicitor shall adopt internal policies, controls and procedures, in relation to the solicitor’s business to which these Regulations apply, to prevent and detect the commission of money laundering and terrorist financing.
(2) In particular, a solicitor shall adopt internal policies, controls and procedures to be followed by persons involved in the carrying out of the obligations of the solicitor’s obligations under this Part.
(3) The internal policies, controls and procedures referred to in paragraph (1) include policies, controls and procedures dealing with-
(a) the identification, assessment, mitigation and management of risk factors relating to money laundering or terrorist financing,
(b) client due diligence measures,
(c) monitoring transactions and business relationships,
(d) the identification and scrutiny of complex or large transactions, unusual patterns of transactions that have no apparent economic or visible lawful purpose and any other activity that the solicitor has reasonable grounds to regard as particularly likely, by its nature, to be related to money laundering or terrorist financing,
(e) measures to be taken to prevent the use for money laundering or terrorist financing of transactions or products that could favour or facilitate anonymity,
(f) measures to be taken to prevent the use for money laundering or terrorist financing which may arise from technological developments including the use of new products and new practices and the manner in which services relating to such developments are delivered,
(g) reporting (including the reporting of suspicious transactions),
(h) record keeping,
(i) measures to be taken to keep documents and information relating to risk assessments by that solicitor up-to-date,
(j) measures to be taken to keep documents and information relating to the clients of that solicitor up to date,
(k) internal systems and controls to identify emerging risks and keep business-wide risk assessments up to date, and
(l) monitoring and managing compliance with, and the internal communication of, these policies, controls and procedures.
(4) The solicitor shall also adopt internal policies, controls and procedures in relation to the monitoring and management of compliance with, and the internal communication of, the policies, controls and procedures referred to in paragraph (2).
(5) In preparing internal policies, controls and procedures under this Regulation, the solicitor shall have regard to any guidelines on preparing, implementation, and reviewing such policies and procedures that are issued by the Society.
(6) A solicitor shall ensure that persons involved in the conduct of the solicitor’s business are-
(a) instructed on the law relating to money laundering and terrorist financing, and
(b) provided with ongoing training on identifying a transaction or other activity that may be related to money laundering or terrorist financing, and on how to proceed once such a transaction or activity is identified,
(7) A solicitor shall have in place appropriate procedures for partners, employees and agents of the practice to report a contravention of these Regulations or the Act of 2010 internally through a specific, independent and anonymous channel, proportionate to the nature and size of the practice concerned.
(8) A reference in this Regulation to persons involved in the conduct of a solicitor’s business includes a reference to employees of the solicitor.
(9) The obligations imposed on a solicitor under this section do not apply to a solicitor who is an employee of another designated person.
(10) The Society may investigate the alleged breach by a solicitor of these Regulations and, to that end, may in respect of the solicitor concerned give directions to the solicitor, including but not limited to-
(a) appointing an individual at management level, to monitor and manage compliance with, and the internal communication of, internal policies, controls and procedures adopted by the solicitor,
(b) appointing a member of senior management with primary responsibility for the implementation and management of anti-money laundering measures in accordance with the Act of 2010, and
(c) undertaking an independent, external audit to test the effectiveness of the internal policies, controls and procedures set out in this Part.
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paragraphs: (1) A solicitor shall carry out an assessment, referred to as a “business risk assessment”, to identify and assess the risks of money laundering and terrorist financing involved in carrying on his or her business activities taking into account at least the following risk factors:
(a) the type of client that the solicitor has;
(b) the services that the solicitor provides;
(c) the countries or geographical areas in which the solicitor and his clients operate;
(d) the type of transactions that the solicitor carries out;
(e) the delivery channels that the solicitor uses;
(f) other additional risk factors prescribed by the Minister under the Act of 2010.
(2) A solicitor carrying out a business risk assessment shall have regard to-
(a) any relevant information in the national risk assessment carried out by the State in accordance with Article 7(1) of the Fourth Money Laundering Directive, and
(b) any guidance on risk issued by the Society.
(3) A business risk assessment shall be documented and maintained as part of the solicitor’s records.
(4) A solicitor shall keep the business risk assessment and any related documents up-to-date in accordance with his or her internal policies, controls and procedures adopted in accordance with Regulation 5.
(5) A business risk assessment shall be approved by senior management.
(6) A solicitor shall make records of a business risk assessment available, on request, to the Society.
Client risk assessment
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paragraphs: (1) For the purpose of determining the extent of measures to be taken under Regulation 10(2) and (3) and Regulation 11(1) and (3), a solicitor shall identify and assess the risk of money laundering and terrorist financing in relation to the client or transaction concerned, having regard to-
(a) the relevant business risk assessment,
(b) the matters specified in Regulation 6(2),
(c) any relevant risk variables, including at least the following:
(i) the purpose of the relationship;
(ii) the level of assets to be deposited by a client or the size of transactions undertaken;
(iii) the regularity of transactions or duration of the business relationship;
(iv) any additional risk variable prescribed by the Minister under the Act of 2010;