The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 enhances Ireland's AML and CTF framework by transposing elements of the EU’s Fifth Anti-Money Laundering Directive. Key reforms extend obligations to new categories of regulated entities, including virtual asset service providers, requiring them to register with the Central Bank of Ireland and implement robust AML controls. This includes conducting thorough risk assessments and adhering to comprehensive customer due diligence, monitoring, and reporting standards akin to those applicable to traditional financial institutions.

Furthermore, the Act strengthens beneficial ownership regulations, ensuring better access to ownership registers and tighter verification processes. Enhanced due diligence is mandated for politically exposed persons and transactions with high-risk jurisdictions. The expanded powers granted to supervisory authorities facilitate improved inspections, investigations, and sanctions against noncompliant entities, ultimately reinforcing the integrity of Ireland's financial system.