Vol. 507 No. 2
106 Mr. Haughey asked the Minister for Finance the plans, if any, he has to amend the position whereby any person who wishes to open a bank account must produce a utility bill in view of the fact that this penalises certain categories of people such as the homeless, ex-prisoners and others; and if he will make a statement on the matter. [16334/99]
The Criminal Justice Act, 1994, implements the EU Money Laundering Directive in Ireland. Section 32 of the Act provides, inter alia, that a financial institution “shall take reasonable measures to establish the identity of any person for whom it proposes to provide a service .”. It is the legal responsibility of each financial institution to ensure that it complies with this provision. The act does not state what may or may not represent reasonable measures and does not provide for the making of regulations in this regard.
In order to facilitate consistent implementation of the anti-money laundering provisions of the Criminal Justice Act, 1994 guidance notes were issued in May 1995 by the money laundering steering committee, established under the aegis of my Department and representing the various sectors of the financial services industry and the relevant regulatory authorities. These guidance notes recommend that a customer's identity be verified by reference to a document obtained from a reputable source which bears a photograph and signature. The guidance notes also recommend that permanent addresses be verified through, among other things, reference to recent utility bills, such as those of the ESB. The guidance notes state, however, that it may be reasonable to depart from recommended verification procedures in certain circumstances, for example, when the young or the elderly may not be able to provide the documentary evidence of identity which is required of other customers. It is a matter for an institution's management to determine the type of evidence which they are prepared to accept in such cases in order to meet their legal obligations under the Criminal Justice Act, 1994. The guidance notes used by financial institutions are in the process of being reviewed by the money laundering steering committee and the operation of customer identification procedures will be examined as part of this process.
