Pension scheme trustee obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Act, 2010

Wednesday 19 January 2011:Trustees who provide pension scheme trustee services on a commercial basis must obtain an authorisation to do so from the Minister for Justice and Law Reform.

The Anti-Money Laundering Compliance Unit has been established within the Department of Justice and Law Reform to administer the functions of a competent authority under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

The requirement to obtain an authorisation from the Minister for Justice and Law Reform to carry on business as a trust or company service provider applies to a person whose business it is to provide services of (inter alia) acting, or arranging for another person to act, as a trustee of a trust. In such cases it is a matter for the company or individual providing the trustee service to obtain the necessary authorisation from the Minister.

It is important to note that the authorisation requirement does not apply to (a) a member of a designated accountancy body; (b) a barrister or solicitor; (c) a credit institution of financial institution (Section 84 of the Act).

The relevant provisions of the Act are as follows:

  • Section 24 of the Act defines “trust or company service provider” to include any person whose business it is to provide a service of acting, or arranging for another person to act, as a trustee of a trust.
  • Section 25(1) of the Act defines a “designated person” to include any person, acting in the State in the course of business carried on by the person in the State, who or that is a “trust or company service provider”.
  • Section 87(1) of the Act provides that a person commits an offence if the person carries on business as a “trust or company service provider” without being the holder of an authorisation issued by the Minister for Justice and Law Reform.
  • Section 84 provides that “trust or company service provider” does not include any of the following:

a)    a member of a designated accountancy body;

b)    a barrister or solicitor; or

c)    a credit institution or financial institution.

A company which establishes a trust on a once off basis to administer a pension scheme for its employees which has obtained Revenue exempt approval does not fall within the definition of “trust or company service provider” as the company does not provide the service as part of its business.

The Act does not apply to pension scheme trustees (e.g. directors, employees or pensioners) in relation to such pension schemes but does apply to persons whose profession or business it is to provide trustee services on a commercial basis.

 
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