Dáil Éireann Debate, Tuesday - 21 November 2017
269. Deputy Pearse Doherty asked the Minister for Justice and Equality the grounds on which a bank is obliged to implement the issuing of a request pursuant to section 37 of the Criminal Justice Act 2010; if he is satisfied that these provisions are implemented consistently; and if he will make a statement on the matter. [48857/17]
View answerSection 37(1) of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 obliges a bank to take steps to determine whether a customer resident outside the State is a politically exposed person or a close associate or immediate family member of a politically exposed person ("PEP"); the definition of such a person is set out in Section 37(10). Section 37(3) requires that such steps should be those reasonably warranted by the risk that such a customer is involved in money laundering or terrorist financing.
Section 37(4)(a) obliges a bank, where such a determination has been made, to ensure that approval is obtained from senior management before a business relationship is established with such a person. Section 37(4)(b) obliges a bank in such circumstances to determine the source of wealth and of funds for transactions which the customer seeks to carry out.
Section 37(8) obliges a bank to discontinue the business relationship or refuse to carry out transactions where the customer fails to provide documents or information which are required for the bank to meet its obligations as noted above.
The Central Bank of Ireland is responsible for the monitoring of credit and financial institutions Anti Money Laundering compliance with the Act. In previous inspections of the banking sector, the Central Bank found deficiencies in the measures banks had in relation to PEPs. These deficiencies included the initial screening of customers, timing of senior management approval and the failure to sufficiently identify, verify and document source of wealth and source of funds.
