The Role of Law Firms in Ireland in Collaborating with Financial Institutions to Prevent Money Laundering

Abstract

This dissertation aims to demonstrate that Irish legal practice plays a pivotal role in collaboration with financial institutions in the fight against money laundering. The research employs a case study approach to examine how Irish legal firms manage anti-money laundering (AML) compliance, with particular attention paid to the relationship between such compliance and financial institutions and the impact of EU regulations. This research uses a qualitative approach, as it involves semi-structured interviews with senior lawyers from leading Irish law firms. The aim is to map their strategy, challenges, and best practices in AML compliance.

The findings indicate that law firms are not merely enforcers of compliance regulations but active partners in reducing financial crime. This is achieved through advice, risk assessment, and regulatory guidance.

The survey findings also identified significant challenges facing legal practice in the context of regulations. These include the tension between client confidentiality and the regulatory requirement for disclosure, the complexities of cross-border transactions, and the financial burden of maintaining compliance with anti-money laundering (AML) regulations. In response to these challenges, numerous firms have employed sophisticated technological tools, including AI-powered analytics, with the requisite coordination capabilities for use in financial institutions and with regulators to enhance AML work. The study suggests that ongoing planning, investment in technology, and developing collaborative frameworks are essential to advance these AML strategies in Ireland. This study will be invaluable in enhancing this practice of AML for law firms, policymakers, and regulators and in positioning Ireland as a safe financial destination. Consequently, further research is required on the localisation of anti-money laundering strategies in different countries and the impact of emerging technologies.