Will the Minister explain this section, which relates to cross-Border credit transfers, as there is now a large difference between the values of sterling and the IR£?
Central Bank Bill, 1996: Committee and Final Stages.
Sections 1 to 21, inclusive, agreed to.
SECTION 22.
Question proposed: "That section 22 stand part of the Bill."
That is not the issue. Section 22 is a technical provision to allow the Minister for Finance to introduce regulations for the purpose of regulating cross-Border credit transfers. A directive of the Council and the European Parliament in relation to cross-Border credit transfers was adopted on 19 December 1996. I was part of the conciliation process which achieved final agreement on the matter.
The directive provides for customer information, both before and after execution of transfers, time limits on the execution of a transfer, failing which compensation must be paid, an obligation to execute the transfer in accordance with instructions, and refunds in the event of non-execution of transfers. It is a customer service provision regarding the transfer of quantities of money across borders within Europe to ensure there are certain guarantees for customers in the system. In so far as the provisions of the directive are covering new areas, that is, provisions for refunds as well as transparency and performance, section 22 has been included in the Bill to ensure there will be an appropriate legal basis for regulations to implement the directive. The Bill will ensure there is a proper legal basis for the directive which was agreed in Europe.
Question put and agreed to.
SECTION 23.
Question proposed: "That section 23 stand part of the Bill."
I welcome the section because the regulations of many Government organisations are often too restrictive. The provision ensures the Central Bank can easily form or acquire shares in a company.
I thank the Senator.
Question put and agreed to.
Sections 24 to 29, inclusive, agreed to.
SECTION 30.
Question proposed: "That section 30 stand part of the Bill."
What type of conditions will be set for bureaux de change? At present it appears to be an open market for rates of exchange and commissions. This area must be examined because some people are being ripped off. I am glad the Bill will ensure all bureaux de change must be registered and have proper credentials because tourists and others are often ripped off.
I welcome the section because it is time bureaux de change were controlled.
Section 30 is a standard provision requiring every authorised bureaux de change business to comply with such supervisory standards, requirements or conditions as the Central Bank sets down from time to time in the interest of the orderly regulation of bureaux de change and in the context of the effective implementation of the money laundering provisions of the Criminal Justice Act. The section has nothing to do with charges in terms of exchanging money which will be covered by the Consumer Credit Act. The provision in the Bill is to specifically counteract money laundering.
Question put and agreed to.
Sections 31 to 49, inclusive, agreed to.
Sections 50 and 51 deleted.
Sections 52 to 61, inclusive, agreed to.
SECTION 62.
Question proposed: "That section 62 stand part of the Bill."
With regard to the provision in section 62 that a judge of the District Court may issue a warrant authorising a member of the Garda Síochána and any others named in the warrant — who are the "others" that might be named. Is that not too broad?
With respect, what Bill is the Senator reading from?
I am reading from the explanatory memorandum.
Is that the Bill as initiated?
Yes.
It is no longer section 62; I am advised that section 77 will cover the point the Senator is raising. The Bill was changed somewhat in the Dáil and we are now dealing with the Bill as passed by the Dáil.
Question put and agreed to.
Sections 63 to 77, inclusive, agreed to.
SECTION 78.
Question proposed: "That section 78 stand part of the Bill."
With regard to the provision for search and seizure in section 78, in relation to the Taylor Investments fiasco, does this section ensure that future episodes like that will not happen again in this country?
It will make it far more difficult and it will put the regulation on a specific footing. With regard to section 77, the Investment Intermediaries Act of 1995 conferred on the Central Bank and the Department of Enterprise and Employment strong powers of inspection of investment business firms. This measure was designed as a reaction to the growing number of firms engaging in non-legitimate investment business. The banking sector does not have comparable regulation of potentially illegal deposit takers and there is a genuine concern that some firms, particularly those who heretofore operated investment businesses, may turn their attention to the banking area where they may perceive a legitimate weakness. This section confers on the bank the same powers of inspection as provided for in the Investment Intermediaries Act. I hope that answers the Senator's question. Section 78 also deals with the issue raised by the Senator and would also apply to a Taylor-type situation.
Question put and agreed to.
Sections 79 to 87, inclusive, agreed to.
Schedule agreed to.
Title agreed to.
Bill reported with amendments and received for final consideration.
Question proposed: "That the Bill do now pass".
I thank the Senators for their contributions to the debate on this Bill. Despite the fact that the majority of the Bill's provisions are technical, serious policy issues are being addressed such as the future supervision of investment intermediaries, which some Senators had concerns about. It also addresses the issues of payment systems and, to the extent that they do not form a part of an already supervised entity, bureaux de changes. These are extremely important provisions which will serve to assist the effectiveness and efficiency of the financial markets in Ireland as well as assisting our role in the international drive against money laundering. The Bill also has the effect of updating the law relating to the Central Bank in advance of the introduction of new legislation to cater for the move to the third stage of European Monetary Union in 1999. Proposals for that legislation are being examined at present and I look forward to the wide ranging debate that will generate.
The passing of the provisions which this current Bill contains means we can now look forward to a debate on the European Monetary Union legislation, which will not be obstructed by the issues we have discussed here today, important as they are. In a sense this is a clearing of the decks in preparation for the next piece of legislation. I believe this is a good thing; European Monetary Union is too serious an issue to clog its effecting legislation with unrelated matters. I would also like to take this opportunity to thank the officials from my own Department who have assisted me together with those from the Departments of Enterprise and Employment and the Environment. I also thank the officials from the offices of the Attorney General and the parliamentary draftsmen. I thank Senators on both sides of the House for their co-operation in the passing of this Bill.
My colleague, Senator Roche, teased out the issues very ably and well with the Minister on a previous occasion so there is no point in going over the same ground again today. I welcome the Bill and I think we all should.
Money laundering has become a very serious problem and it is something which must be stopped. I wonder sometimes whether we are putting sufficient controls in place in the area of money. Money has caused many problems for many people, some of whom have lost their savings. Today we see the institutions which handle money seemingly throwing it about like confetti at a wedding or snuff at a wake. I wonder if there is a need for some kind of body to be set up that would see whether the people who are borrowing this money are getting value for it, particularly in the area of house building. People are borrowing up to four times their yearly income in this area. If a market slump occurs, as happened in England recently, we will have that terrible bugbear here called "negative equity", where people's property will be worth less than what they owe on it. In England I have seen streets of houses for sale by one building society. They could not give these houses away. There is a danger, with the level of money being loaned here, that that will be a problem in coming years. There should be some mechanism in place to ensure that no property price rises above its value. Young people are afraid that this trend will continue and that their savings will not be sufficient to pay a deposit in another year. As a result, they are borrowing out of their depth. This is a dangerous situation. Money problems have caused all of us headaches from time to time.
I welcome this Bill and I hope it puts an end to money laundering, which has been one of the big problems with regard to the drug business. If the drug barons were unable to get the money out of the country, it would be much easier to deal with them. I thank the Minister.
This is a very important piece of legislation. We all want to see controls put on the laundering of money, which this Bill does. Nobody wants to see another collapse like Taylor Investments in this country. The Bill also addresses this issue. I congratulate the Minister and thank her for the efficient way in which she has steered this Bill through the House.
I, too, compliment the Minister and her staff on the preparation and presentation of this Bill to the House.
Regulations relating to money, whether money laundering or savings, are important. With the swipe of a card through a machine, hundreds of pounds may be transferred in seconds.
Millions of pounds.
We must ensure the regulations are right. Although this was a very technical Bill, much of which I had difficulty understanding, it is important in that it puts these regulations in place. If Irish horses in Cheltenham run as fast today as we passed this Bill, we will have some winners.
Question put and agreed to.
Sittings suspended at 11.20 p.m. and resumed at 2 p.m.