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Dáil Éireann Debate, Wednesday - 15 January 2014

Wednesday, 15 January 2014

Questions (537, 539)

Maureen O'Sullivan

Question:

537. Deputy Maureen O'Sullivan asked the Minister for Justice and Equality his response to the latest report from a company (details supplied) highlighting a significant strength in cash payments, where 54% of residential transactions made in the first nine months of 2013 involved cash purchases in comparison to 43% in 2012; the vendor profile for those transactions involving cash; if he is confident that there are no links to organised crime and criminal gangs; and if he will make a statement on the matter. [1229/14]

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Maureen O'Sullivan

Question:

539. Deputy Maureen O'Sullivan asked the Minister for Justice and Equality the guidelines or statutory regulations that are in place to ensure estate agents carry out vetting of home buyers who pay with large sums of cash; if there is any obligation on estate agents to declare a cash transfer on homes; his response to a company's (details supplied) report on home buyers stating a noticeable increase in the strength of cash in 54% of all property transactions; what is the vendor profile for those transactions involving cash, how to ensure that there are no links to organised crime and criminal gangs; and if he will make a statement on the matter. [1242/14]

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Written answers

I propose to take Questions Nos. 537 and 539 together.

I note that the Report referred to by the Deputy was issued by a well-known estate agency with a national presence and highlighted the ongoing prevalence of cash buyers in the property market. I should advise the Deputy that the Property Services Regulatory Authority was established in April 2012 under the Property Services (Regulation) Act 2011 and is responsible for controlling and regulating Property Service Providers (i.e. Auctioneers/Estate Agents, Letting Agents and Management Agents).

To enable the Authority to exercise its regulatory role, Section 65 of the 2011 Act provides that the Authority "shall, following the receipt of a complaint, or may of its own volition, cause such investigation as it thinks fit to be carried out..." to identify any "improper conduct" which has or is being committed by a Property Services Provider. I am advised by the Authority that it does not collect or collate information in relation to cash buyers. The Authority is aware that in recent years there has been an increase in the number of properties bought for cash. This could, however, be attributed to a decrease in mortgage lending and the Authority is not currently aware of any more sinister explanation for this trend.

However I can assure the Deputy that measures are in place to ensure that any suspicious transactions can be examined by the law enforcement authorities. A Property Services Provider is a "designated person" for the purposes of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. To comply with that Act, designated persons are required to have a range of measures in place to ensure that customers are not laundering money or financing terrorism. This includes identifying and verifying the identity of customers and beneficial owners, training their staff, keeping records etc. and making Suspicious Transaction Reports as necessary to An Garda Síochána and the Revenue Commissioners.

Under Section 42 of the 2010 Act, where a Property Service Provider knows, suspects or has reasonable grounds to suspect, on the basis of information obtained in the course of business that another person has been or is engaged in money laundering or terrorism financing they are required to make a Suspicious Transaction Report to An Garda Síochána and the Revenue Commissioners. All Suspicious Transaction Reports are subsequently investigated as appropriate by the law enforcement authorities to examine any links such transactions may have to any form of criminal activity.

I can further inform the Deputy that it is my intention to confer the relevant powers under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 on the Property Services Regulatory Authority, by way of an order under Section 60 of that Act, to enable that Authority to monitor property service providers for the purpose of securing compliance by such providers under the requirements of the Act. I understand that it is the intention of the Property Services Regulatory Authority, once such powers are delegated, to include as part of its normal regulatory investigations, an examination of how property service providers are complying with their obligations under the 2010 Act.

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