Irish firms warn they will struggle to meet new EU anti-money laundering rules

Research by PwC found that just 43 per cent of Irish firms expect to be fully compliant by July 2027, although this was higher than the average across the 40 countries surveyed, where only 33 per cent anticipated full compliance.

The survey of 500 firms found that more than a third of Irish respondents are struggling to recruit suitably qualified staff to implement the new rules.

The reforms will ban cash transactions exceeding €10,000 across the EU and require enhanced checks on cash payments above €3,000, including verification of sanctions compliance and beneficial ownership.

The rules will apply to a wide range of sectors beyond banking, including lawyers, accountants, jewellers, art dealers, crypto-asset providers, casinos, football clubs and crowdfunding platforms.

A new Frankfurt-based anti-money laundering authority, on whose executive board former Central Bank of Ireland deputy governor Derville Rowland serves, will supervise the EU’s 40 largest financial institutions, including some based in Ireland.

A recent Department of Finance risk assessment identified a “very significant” money laundering risk through retail and online banks, cryptocurrencies and special purpose entities, including Section 110 companies.

PwC said Irish firms were most concerned about the shift to a more prescriptive rules-based regime, alongside increased compliance costs and greater data collection requirements.

Muireann O’Keeffe, director of anti-money laundering at PwC Ireland, said: “Irish financial institutions need to do more to prepare for new anti-money laundering rules.

“Financial institutions are caught in a cycle where rising regulatory expectations require more resources, yet the availability of appropriately qualified staff remains limited.”