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Dáil Éireann debate -
Wednesday, 24 Oct 2001

Vol. 542 No. 6

Written Answers. - Banking Sector.

Charles Flanagan

Question:

85 Mr. Flanagan asked the Minister for Finance if his attention has been drawn to the fact that the banks are imposing tough rules in respect of the operation of accounts by immigrant workers; and if he has a role in assisting in this regard. [23250/01]

Charles Flanagan

Question:

114 Mr. Flanagan asked the Minister for Finance if he will meet with the main banks to discuss the difficulties experienced by non-national workers opening and operating bank accounts. [23058/01]

I propose to take Questions Nos. 85 and 114 together.

The money laundering provisions of the Criminal Justice Act, 1994 require financial institutions to take reasonable measures to identify their customers. This involves verification of a prospective customer's name and address. The recommended procedures used for this purpose are set out in guidance notes issued by the money laundering steering committee which includes representatives of the financial institutions and of the regulatory authorities and is chaired by the Department of Finance.

Although the guidance notes give banks discretion to take account of the circumstances of customers who may not posses the recommended forms of name and address verification, I am aware that certain groups, including immigrant workers have experienced difficulties in this area. To deal with these problems revised guidance notes have been drawn up which give banks more specific guidance on the documents they should seek and should help to deal with the difficulties experienced by certain groups in opening bank accounts. These revised guidance notes are expected to be issued within the next few weeks and should be implemented by banks over the coming months following training of their staff in the revised procedures.

I repeat that, although the revised guidance notes should reduce the difficulties referred to by the Deputy, banks currently have discretion to deal with such difficulties and in the particular case of immigrant workers these are often resolved by an approach by the employer to a bank. If, however, the Deputy is aware of situations where immigrant workers have not been able to open bank accounts I would be happy to take the matter up with the Central Bank if he provides me with the details.
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