"We feel the spirit of this approach is also consistent with the Irish electoral law that prohibits campaigns from accepting foreign donations", it added.
Facebook faced a wave of criticism for missing interference by Russia-based groups during the 2016 presidential campaign in the United States.
Facebook has tried to improve its transparency after revelations that political consultancy Cambridge Analytica harvested users' data to micro-target political ads to select groups during the 2016 USA presidential race.
Facebook has previously committed to introduce such tools but has said they are not ready in time for the referendum.
Concerns have been raised about the influence organisations and individuals based outside of Ireland have had on the outcome of the referendum thanks to a legal loophole that allows them to buy adverts on social media.
Currently, there are no laws or regulations governing social media advertisements or targeting of voters by overseas organisations in relation to the upcoming referendum.
"We also welcome comments from the Press Ombudsman Peter Feeney this afternoon that this move will hinder forces seeking to manipulate the democratic process in Ireland, and also his public appeal to tech giants likes Facebook and Google to face up their responsibilities and role in influencing democratic outcomes".
Facebook says starting Tuesday it will'begin rejecting ads related to the referendum if they are being run by advertisers based outside of Ireland
The company said it was deploying "election integrity artificial intelligence" for the referendum, similar to that before recent elections in France, Germany and Italy. And while Ireland forbids foreign spending in campaigns, its election law is silent on digital activity.
Facebook has changed its advertising policy ahead of the referendum on the Eighth Amendment. The business has shifted its news-feed algorithm to deemphasize political news, and has appreciated thousands of moderators internationally to spot rumors and extremist articles.
The company will soon start requiring political advertisers to be residents in the country where the election is taking place.
As for who is paying for those ads, said Sheridan, "the only people who know that for certain are Facebook themselves". "It's not just about Facebook". It added: "We will then assess and act on those reports". Before the German election in September, for example, the company deleted thousands of fake accounts and worked with election officials to stop the spread of misinformation more quickly.
"The poll shows a growing appetite among Irish people to ensure that abortion in Ireland is safe and regulated".
The Transparent Referendum Initiative has been tracking online advertising around the vote.
A new "view ads" tool, which is still in trial mode after launching on April 25, allows users to see all of the ads an advertiser is running on the site in Ireland.More news: Yates in pink as Chaves wins sixth stage, Froome eighth
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