Dáil Éireann Debate, Wednesday - 18 May 2016
58. Deputy Clare Daly asked the Minister for Finance the global standing of Irish law firms operating in the service sector of company formation and nominee directorships, which have featured in the Panama papers leak; if he or the Central Bank will create credible regulations on the use of shadow banking systems that rely upon trust vehicles and brass plate directors; and the value of such financial services exports. [10874/16]
Amharc ar fhreagraIrish law firms have a role in advising companies establishing themselves in this country on how to comply with Irish company law and financial regulatory requirements. I am not however in a position to comment upon their global standing or otherwise.
The Panama papers contain a large volume of information about individuals, companies and firms around the world. My understanding is that references to firms operating in Ireland make up a very small percentage of the Papers. As is the case when any such information comes to their attention, it is a matter for the Revenue Commissioners to examine this information. You should be aware that discussions are ongoing between my officials and those in Revenue in relation to Revenue powers in the context of the next Finance Bill. In this regard, I have indicated to the Chairman of the Revenue Commissioners that I am committed to supporting any new legislative changes that he feels are needed to tackle international tax evasion.
In relation to the second part of your question, the Central Bank has advised that the work of the Financial Stability Board indicates that shadow banking embraces a wide range of activities and entities. Depending on the nature of these activities, they may already be in scope under a range of national and European financial services regulations which have been put in place to regulate such activities. The following regulations, for which the Central Bank is the competent authority, may apply to all or part of the activities undertaken: Prospectus Directive, Transparency Directive, European Market Infrastructure Regulation, Anti Money Laundering Directives, Alternative Investment Fund Manager Directive, ECB Reporting Regulations, Central Bank SPV Reporting Regulations, Consumer Protection (Regulation of Credit Servicing Firms) Act 2015. This list is not exhaustive and further regulatory measures to deal with shadow banking are regularly considered at national, EU and other international fora.
Finally, the Finance Dublin Yearbook 2016 states that the value of IFSC financial services exports in 2015 was €30,951m.
