Frank Feighan (Roscommon-South Leitrim, Fine Gael) | Oireachtas source

I wish to share time with Deputy Seán Kenny.

I welcome this amending legislation. The principal Act took into account many recommendations from the Financial Action Task Force on Money Laundering and terrorist financing. The primary purpose of the Bill is to take make technical amendments to the Act to align a number of provisions more closely with international standards. I am delighted that we are working on an international basis because money laundering is not confined to individual jurisdictions. The main provisions in the Bill lower the monetary threshold at which a customer is subject to due diligence to €2,000 in private members' gaming clubs and €1,000 for wire transfers. The black economy has developed over the years and there has been a great deal of money laundering. This money is ill gotten and generated through various schemes such as the sale of illegal drugs, illegal gambling and the sale of illegal cigarettes, which is a major issue, as Deputy McGrath pointed out. That is causing significant damage to our economy and to people's health. The cigarettes are being imported from outside the EU and they are probably much worse for people's health.

We need to tackle fuel laundering, in particular. The Garda is working with the PSNI and other security forces but the issue has worsened. I live 40 miles from the Border and I have travelled through the country. Many petrol stations, which I thought were bona fide, have been closed. This has put pressure on Exchequer finances and laundered fuel has resulted in a great deal of damage to cars. Insurance companies should be asked to conduct an analysis of the cost to motorists. Six months ago, my car fell victim to laundered fuel and it cost €6,000 to replace the engine. Not alone is the Exchequer losing money through the failure to pay VAT and other taxes, this practice is causing huge problems for insurance companies.

Many people with excess money to spend visit bookmakers' sites online and they can gamble on all the horses in one race, for example. They can surely win but that money is going back into the system. This industry needs to be examined in more detail.

I attend meetings all over the country and people are furious that those who brought the State to its knees continue to drive around in state-of-the-art cars, take holidays and travel first class and they do not seem to be affected by what happened. Where did the money come from for this? As a former Member said a few years ago, they are living the lives of rock stars. Many people are in difficulty, with most of them in negative equity. They are fuming because they do not know where this money is coming from. It does not set the right example.

I pay tribute to the Garda and the customs and excise officials. Criminals are using technology and, therefore, the Garda needs to use technology, as Deputy McGrath said. There has been much debate over the years about the closure of small Garda stations. I acknowledge the Garda must adopt a more technological approach but I would prefer to have a team of gardaí worked together to combat money laundering and the black economy than to deploy a garda in a local barracks who spends his time stopping people for not having a light on their bicycles.

We must have a measured and informed debate. Everything is more mobile nowadays. Money can be sent all over the world from a person's iPhone.

We all want local gardaí and Garda stations but we also need a Garda task force that will work alongside others to target and prevent money laundering. While it is not possible to provide precise figures on the scale of the money laundering problem, it is estimated that it accounts for a staggering 2.7% of global gross domestic product and generates approximately €1.6 trillion per annum. Preventing it presents a major challenge for governments and law enforcement agencies across the world. This legislation brings Ireland into line with international standards.

The Financial Regulator, Mr. Matthew Elderfield, has done significant work since his appointment three years ago. Members of the public do not fully understand the progress he has made in tackling light touch regulation, which effectively meant no regulation. His appointment was a departure from the practice of seeking an Irish solution to an Irish problem. He came here from abroad and has done an excellent job, although the difficult decisions he has taken have sometimes been hard to accept in such a small country. Mr. Elderfield's legacy is one of imposing proper systematic controls on the banking and financial services sectors. I met him once three years ago and wish him well wherever he goes. It will be difficult to find a replacement for him. I welcome the changes provided for in the legislation.

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