Dáil Éireann Debate, Thursday - 7 April 2022
17. Deputy Maurice Quinlivan asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated impact the delay in establishing the corporate enforcement authority is having on the Companies Registration Office and its ability to pursue potentially bogus and fake companies; and if he will make a statement on the matter. [18617/22]
View answerCompany law is primarily concerned with providing the legislative framework for the structure and operation of companies incorporated in Ireland, whether domestic or foreign, and does not regulate or supervise the actual activities of companies.
Such activities are governed by other legislation including for example in the areas of consumer protection, competition, taxation, anti-money laundering and fraud. Compliance matters in these areas come within the remit of the relevant statutory bodies.
While it is not the role of the Companies Registration Office to question the motivation for incorporating a company, the office takes seriously allegations of suspicious or bogus activity. In this regard, the CRO has set up an integrity checking function and put in place various measures to identify and, as appropriate, follow-up on potentially suspicious activity relating to the incorporation of companies and the filing of other submissions.
The provision of false information is a criminal offence under section 876 of the Companies Act 2014 and when the CRO has concerns in this regard, such matters are referred to the Office of the Director of Corporate Enforcement. Since mid 2021, the CRO has made 89 referrals to the ODCE involving some 191 companies.
Under anti-money laundering legislation, companies are also required to register certain information in respect of their beneficial owners with the Central Register of Beneficial Ownership of Companies and Industrial and Provident Societies (RBO). The RBO follows up with companies who do not make the required filings and I understand that the Registrar is considering taking prosecutions in a number of cases.
The Companies (Corporate Enforcement Authority) Act 2021 provides for the establishment of the Corporate Enforcement Authority. An amendment was required to address a cross referencing error before bringing the Act into effect. This has been done and work can now proceed on the required Orders to commence provisions of the Act and provide for an establishment day for the Authority. My intention is that establishment will take place once all the legal, operational, and resourcing matters integral to the CEA’s successful establishment, are finalised to my satisfaction.
Among the provisions of the Companies (Corporate Enforcement Authority) Act 2021 is a requirement that company directors provide PPS numbers to the CRO. This will be a significant enhancement to the current regime and will assist the CRO in verifying the authenticity of directors. The CRO is currently making the necessary changes to IT systems and related procedures and expects to be in a position to implement the requirement in January 2023, after the end year filing peak.
