NAMA Assets Sale

Dáil Éireann Debate, Thursday - 2 July 2015

Thursday, 2 July 2015

Questions (80, 81, 82, 83, 84, 85, 86)

Lucinda Creighton

Question:

80. Deputy Lucinda Creighton asked the Minister for Finance if he is aware of the sale of a residential property (details supplied) by the National Asset Management Agency to an offshore-registered British Virgin Islands company which is believed to be a front for Ali Ben Bongo Odinba, President of Gabon, for £25 million sterling in cash; his views on whether transactions to such persons may cause reputational damage to the agency and the State; and if he will make a statement on the matter. [26825/15]

Lucinda Creighton

Question:

81. Deputy Lucinda Creighton asked the Minister for Finance in view of the sale of a residential property (details supplied) for £25 million sterling to an offshore-registered British Virgin Islands company which is believed to be a front for the President of Gabon, if there is a protocol within his Department governing large cash sales by the National Asset Management Agency to persons being investigated by State agencies; if not, if such a policy should be put in place; and if he will make a statement on the matter. [26826/15]

Lucinda Creighton

Question:

82. Deputy Lucinda Creighton asked the Minister for Finance the protocols in place within his Department and the National Asset Management Agency to identify the source and identity of funds which are used to pay for assets sold by debtors of the agency; and if he will make a statement on the matter. [26827/15]

Lucinda Creighton

Question:

83. Deputy Lucinda Creighton asked the Minister for Finance if, as a matter of policy, the National Asset Management Agency informs his Department of large cash sales to shell and foreign trading companies; if not, if such a policy should be put in place; and if he will make a statement on the matter. [26828/15]

Lucinda Creighton

Question:

84. Deputy Lucinda Creighton asked the Minister for Finance if there is an ethical framework within his Department and the National Asset Management Agency to ensure that assets are not sold to certain categories of persons or bodies corporate, where said persons or bodies corporate are of ill-repute, suspected to be involved in criminal activities such as money-laundering or suspected to be involved in corruption; if he will provide the details of any such framework; and if he will make a statement on the matter. [26829/15]

Lucinda Creighton

Question:

85. Deputy Lucinda Creighton asked the Minister for Finance if he is aware of transactions involving the National Asset Management Agency and persons or bodies corporate of ill repute suspected to be involved in criminal activities such as money laundering or suspected to be involved in corruption; if he will provide details of such transactions; if he has inquired with the agency regarding any such transaction; his views on whether such transactions are politically, morally or ethically acceptable; and if he will make a statement on the matter. [26830/15]

Lucinda Creighton

Question:

86. Deputy Lucinda Creighton asked the Minister for Finance in view of his supervisory role over the National Asset Management Agency, if he will consider any failure by himself or his Department to be fully aware of large cash sales by the agency to persons being investigated for criminal acts as representing a breach of his fiduciary duties; and if he will make a statement on the matter. [26831/15]

Written answers

Minister for Finance

I propose to take Questions Nos. 80 to 86, inclusive, together.

As Minister for Finance, it would not be appropriate for me to comment on any individual transactions.

On the more general questions raised by the Deputy, I am advised that NAMA is a designated person pursuant to Section 25(1) of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the "Act") when it is carrying out the activity of lending. As a designated person, NAMA is required to have procedures for the assessment and management of risks of money laundering or terrorist financing, based on a methodology proportionate in its detail and complexity to the size and nature of the business and the inherent risks of money laundering or terrorist financing. NAMA has such procedures in place.

I am further advised that when undertaking loans sales, which is a distinct activity from that of lending, NAMA conducts Anti-Money Laundering due diligence checks on a best practice basis in order to mitigate reputational risk. In all such transactions, NAMA is particularly interested in establishing the identity of the ultimate beneficial owners. Where such transactions include UK persons/entities, NAMA may make enquiries through the Serious Organised Crime Agency (SOCA), as appropriate.

Where property sales are conducted by debtors, notwithstanding the funds from such a sale may ultimately be used to repay NAMA debt, NAMA is not a party to the property transaction. The relevant Anti-Money Laundering checks are conducted by the parties to the transaction, that is, the solicitors involved in the transaction and the financial institutions through which the funds may flow, as designated persons in their own right.

I am informed that in this case the transaction was notified and cleared by SOCA in the UK as the purchaser was a PEP (politically exposed person).