Dáil Éireann díospóireacht -
Thursday, 30 Nov 2000

Vol. 527 No. 2

Written Answers. - Money Laundering.

Michael D. Higgins

Ceist:

46 Mr. M. Higgins asked the Minister for Finance if he has satisfied himself with the level of supervision and monitoring of accounts in Irish banks having regard to recent reports that a number of foreign leaders had used Irish banks to hide money stolen from their own people; and if he will make a statement on the matter. [27991/00]

Minister for Finance (Mr. McCreevy)

The Deputy's question refers to a number of foreign leaders having used Irish banks to deposit funds. I am aware of recent reports regarding one former leader having used a bank located in Ireland to deposit funds. I understand that these reports are being investigated to establish whether Irish supervisory requirements relating to money laundering have been breached. No approach has been made by the authorities of that country to the Irish authorities to date.

The Criminal Justice Act, 1994, created the offence of money laundering and obliged financial institutions, inter alia, to identify their customers and to report suspicious transactions to the Garda Síochána. The Criminal Justice Act, 1994, also obliges the Central Bank to report to the Garda Síochána where it suspects that an offence under the money laundering provisions of the Act has been or is being committed by a bank it supervises.

The Central Bank, as part of its supervision of Irish banks assesses the adequacy of procedures adopted by banks to counter money laundering and the degree of compliance with such pro cedures. Irish banks are required by the Central Bank to establish adequate procedures of internal control and communication to prevent money laundering, including the designation of a money laundering reporting officer whose responsibilities include the prompt reporting of suspicious transactions to the Garda Síochána.

As with all prudential matters, should issues arise in a particular institution, which come to the Central Bank's attention, it would take immediate action, including, in the case of Irish banks, specific inspection work where necessary to confirm that the management of the institution had taken any necessary remedial action and, in the case of branches of EEA credit institutions operating in Ireland, liaison with the banking supervisory authority in the home member state responsible for the supervision of that institution.

In the circumstances, I am satisfied that appropriate measures are in place to minimise the risk of Irish financial institutions being used for the purpose of money laundering.