Dáil Éireann Debate, Tuesday - 23 March 2004
60 Mr. M. Higgins asked the Minister for Finance the total number of suspicious financial transactions that might involve money laundering reported to the Revenue Commissioners during 2003; if he has satisfied himself that adequate procedures are in place to prevent money laundering; the work being undertaken by the money laundering steering committee; and if he will make a statement on the matter. [8927/04]
View answerI am advised by the Revenue Commissioners that they have received 2,688 suspicious transaction reports, which may relate to money laundering, between 1 May 2003, the date on which the reporting obligation under section 57 of the Criminal Justice Act 1994 was extended to the Revenue Commissioners, and 31 December 2003. A dedicated office, the suspicious transactions reports office, has been set up to ensure these reports are comprehensively followed through by Revenue. The commissioners regard these reports as a valuable intelligence resource which will assist them in the identification of cases of tax evasion. They will be used in connection with their investigation programmes carried out by their regional divisions and by their investigations and prosecutions division.
The suspicious transactions reports office and the Garda bureau of fraud investigation meet regularly to review the reports received and to ensure their respective actions are co-ordinated and do not overlap. Money laundering investigations are conducted by the Garda, and Revenue deals with cases of suspected tax evasion. Irish legislation on money laundering is set out in the Criminal Justice Act, 1994, as amended. Primary responsibility for legislation in the area of money laundering rests with the Minister for Justice, Equality and Law Reform.
Under regulations made by the Minister for Justice, Equality and Law Reform in 2003, and in compliance with the second EU money laundering directive of 2001, the list of bodies designated under the Criminal Justice Act 1994 was extended to include accountants, auctioneers, auditors, estate agents, tax advisers, solicitors, investment business firms, dealers in high value goods where payment is made in cash for a sum of €15,000 or more, casinos, administration companies providing services to collective investment schemes, and providers of money remittance services.
Under the legislation, designated bodies are required to identify their customers, report suspicious transaction to the Garda Síochána and the Revenue Commissioners, keep records and ensure that they have in place adequate anti-money laundering procedures, including staff training. The Irish Financial Services Regulatory Authority requires all institutions it supervises to comply with the anti-money laundering legislation and relevant sectoral guidance notes and to have in place the necessary procedures and controls to ensure such compliance.
The adequacy of such systems is reviewed by IFSRA in the course of its ongoing supervision of institutions and requirements for improvement advised to institutions as necessary. Furthermore, in accordance with its legal obligation under section 57(2) of the Criminal Justice Act 1994, IFSRA is obliged to make reports to the Garda and Revenue where, in the course of its supervision, it suspects that an institution has breached section 31 or 32 of the Criminal Justice Act 1994.
As part of its ongoing supervision, IFSRA ensures that institutions are informed of international developments in the area of prevention of money laundering, in particular in relation to recommendations and reports issued by the international financial action task force on money laundering.
The money laundering steering committee, which was set up in 1994 under the chairmanship of the Department of Finance, is a representative body of Government Departments, enforcement agencies, financial institutions and other designated bodies. Its main function is to facilitate consistent application of the money laundering provisions of the Criminal Justice Act 1994, across the range of bodies affected by the legislation. Ireland's law and procedures on money laundering were the subject of a favourable review by the financial action task force in 1998, under its procedure for the mutual evaluation of its members. The next mutual evaluation of Ireland is due in 2005.
