Vol. 482 No. 3
180 Mr. Rabbitte asked the Minister for Finance the number of breaches of exchange control regulations, if any, detected between 1979 and the ending of such regulations; the number of prosecutions, if any, arising from such detected cases; and the number of convictions secured in this regard. [17997/97]
The Central Bank acted as Agent of the Minister for Finance in the administration of exchange controls in the period 1979-92. Authority to process a wide range of transactions were, in turn, delegated by the Central Bank to authorised dealers, approved agents and certain other financial institutions.
Apart from prosecution, a number of other sanctions were available to the Central Bank to deal with irregularities, principally, the withdrawal of an exchange control permission already granted, the reversal of transactions which had already taken place and the refusal to grant permissions where the application appeared to result from a previously unapproved transaction. All these sanctions were used in instances where they were deemed appropriate. It is not possible for the Central Bank to quantify the number of cases involved since they were not enumerated as they occurred. There were no prosecutions for the period 1979-92.
The Central Bank was requested to undertake specific investigations in relation to possible breaches of exchange controls in relation to the following three reports: (1) the final report of the Investigation into the Affairs of Siúicre Éireann cpt and Related Companies under section 14 of the Companies Act 1990; (2) the final report of the Investigation into the ownership of Chestvale Limited and Hoddle Limited, under section 14 of the Companies Act, 1990; and (3) the Report of the Tribunal of Inquiry (Dunnes Payments).
The findings of the Central Bank in these cases were referred to the Director of Public Prosecutions for his consideration. In respect of (1) and (2) above, I am advised that there were no prosecutions. The position in regard to item (3) above is that the Central Bank response was referred to the Director of Public Prosecutions on Friday 31 October 1997 and is being considered by him.
The Exchange Control Act 1954 provided that the Customs Acts applied to anything prohibited to be imported or exported under the provisions of the 1954 Act.
I am advised by the Revenue Commissioners that while definitive records are not available back to 1979, there were numerous minor breaches of exchange controls which were detected and settled locally, under the powers statutorily available to the Commissioners. For example, where currency notes were seized by the Customs authorities, cases could have been settled by retention from the amount seized of a compromise penalty in lieu of legal proceedings. A number of more serious breaches were also subject to settlement with the Revenue Commissioners in lieu of legal proceedings. In addition, records show that two prosecutions were taken under the Customs Acts between 1979 and 1992 in relation to exchange control breaches and that convictions were obtained in both cases.
