Barry Andrews (Dún Laoghaire, Fianna Fail)

I thank Deputy Broughan for raising this important issue and giving me the opportunity, on behalf of the Minister for Justice and Law Reform, to update the House on it. Deputies will be aware of a significant increase in the number of cash for gold outlets in towns and cities in the State and in the advertising for the direct mailing of gold to such outlets or to dedicated postal and Internet cash for gold traders. It is understood that many kiosks situated in hotels or shopping centres are operated by individuals employed by registered companies to buy gold for cash. It appears that most gold offered to these outlets is paid for on a scrap value basis and items are smelted and recycled. Established jewellers also buy gold and jewellery for cash. The prevalence of this trade appears to be linked to the high price that gold now commands on international markets and the cash for gold concept appears to be an international phenomenon.

There has been a considerable amount of media coverage of the activities of these cash for gold outlets, much of which has involved speculation as to the source of the gold being offered. The Minister is aware that the trade gives rise to concerns in communities about burglaries and other crimes that may be linked to the cash for gold trade.

The informal purchase of jewellery is not specifically regulated in criminal legislation but the circumstances under which jewellery is bought and sold may indicate the commission of certain offences, such as the handling or possession of stolen property under sections 17 and 18 of the Criminal Justice (Theft and Fraud Offences) Act 2001. Section 17 of that Act provides that a person is guilty of handling stolen property if he or she, knowing that the property was stolen or being reckless as to whether it was stolen, dishonestly receives or arranges to receive it or undertakes or assists in its retention, removal, disposal or realisation by or for the benefit of another person or arranges to do so. A person guilty of handling stolen property is liable on conviction on indictment to a fine or imprisonment for a term not exceeding ten years or both. Section 18 of the Act provides that a person who, without lawful authority or excuse, possesses stolen property knowing that the property was stolen or being reckless as to whether it was stolen is guilty of an offence. A person guilty of an offence under this section is liable on conviction on indictment to a fine or imprisonment for a term not exceeding five years or both.

In the context of money laundering and terrorist financing legislation, the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 only addresses a situation where a person buys gold and jewellery from a dealer, usually a jeweller, and pays in cash to the value of €15,000 or more or makes a number of separate purchases for smaller amounts to that total value. In such cases, significant requirements are placed on the vendor to carry out customer due diligence.

The Garda enforces the provisions of the criminal law in respect of the theft and robbery of jewellery and gold. Should members of the public have suspicions that goods being sold or traded may be stolen, the correct action is for these suspicions to be referred to the Garda for investigation.

The latest CSO crime statistical bulletin of 28 October 2010 indicates that with regard to burglary in quarter three of 2010, there were 6,016 recorded burglary and related offences, which represents a decrease of 1,194, or 16.6%, on the number recorded in quarter three of 2009. The annualised total for these offences up to end of quarter three of 2010 saw a smaller percentage decrease of 2.9% over the 12-month period to end of quarter three of 2009. Aggravated burglary offences decreased by 37, or 10.1%, in this 12-month period. The total recorded burglary and related offences for the years 2007 to 2009 are 23,603 in 2007, 24,683 in 2008 and 26,911 in 2009.

To take account of concerns about the matter, the Minister's Department has formally asked the Garda Commissioner to state his view on the extent, if any, of criminal offences that are being committed in the procurement and receipt of gold and similar items in transactions carried out at cash for gold locations. In particular, the Commissioner has been asked to examine whether the trade may be linked generally, or in particular areas, to burglary offences; whether criminal justice legislation, particularly the Criminal Justice (Theft and Fraud Offences) Act 2001, is adequate in the context of cash for gold transactions; whether criminal elements involved in organised crime or otherwise may be connected with the operation and ownership of the cash for gold outlets; and whether new legislative provisions may be required to address criminality in respect of cash for gold transactions. As soon as the outcome of this examination of the matter is to hand, the Minister will make an assessment of what if any action, legislative or otherwise, may be required.

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