Dáil Éireann debate -
Tuesday, 20 Feb 2001

Vol. 530 No. 6

Other Questions. - Money Laundering.

Thomas P. Broughan

Question:

40 Mr. Broughan asked the Minister for Finance if any investigation has been held by his Department or any of the regulatory authorities on the activities of a bank (details supplied) which is reported to operate from within this jurisdiction, and which has been the subject of a critical report by a US Congressional Investigations Committee into money laundering; his plans to provide for the supervision of banks which operate from here, but which do not seek deposits from this jurisdiction; and if he will make a statement on the matter. [4653/01]

Derek McDowell

Question:

177 Mr. McDowell asked the Minister for Finance if any investigation has been held by his Department or any of the regulatory authorities in the activities of a company (details supplied) which is reported to operate from within this jurisdiction and which has been the subject of a critical report by a US Congressional Investigations Committee into money laundering; if he has plans to provide for the adequate supervision of banks which operate from here, but which do not seek deposits from this jurisdiction; and if he will make a statement on the matter. [4896/01]

Mr. McCreevy

I propose to take Questions Nos. 40 and 177 together.

The regulation of banks is the primary responsibility of the Central Bank. I have been advised by the Central Bank that a bank which is not authorised to carry on banking business within Ireland may not advertise for or otherwise solicit deposits in Ireland. It may not hold itself out or represent itself as a bank here, and to do so would involve a breach of the law. It is a matter for the relevant authorities to establish whether there have been any breaches of Irish legislation in relation to money laundering, as with any other matter.

As regards the general question of supervising banks which operate here, the law already provides that only banks which are authorised to trade in Ireland may do so. It is a matter for the relevant authorities, including the Central Bank, the Garda Síochána and the DPP, to determine what action to take if the law is broken.

Mr. McDowell

Would the Minister agree that it is a source of considerable concern that as august a body as the US Senate's permanent subcommittee on investigations would conclude that a body holding itself out as a bank in Ireland was "a magnet for financial fraud and suspect funds"? It is a source of even greater concern that the so-called bank appears still to operate here or, at least, technically still exists in Ireland.

Mr. McCreevy

I read with some interest the relevant newspaper articles on the matter. There is little further that I can add, however, except to say that the appropriate authorities, namely the Central Bank and the Garda Síochána, are looking into the matter. If it can be proved that any institution has broken the law, appropriate action will be taken. I have read the reports and the matter is being further investigated by the appropriate authorities here. The matter should be allowed to rest in order to see what they come up with.

Mr. McDowell

Will the Minister revert to me if and when he receives a report on the matter from the regulatory authorities?

Mr. McCreevy

Yes.