James Browne (Wexford, Fianna Fail) | Oireachtas source

I move amendment No. 8:

In page 19, between lines 24 and 25, to insert the following: “ “regulated financial service provider” means an undertaking that is permitted to conduct activities as a regulated financial service provider within the meaning of section 2 of the Central Bank Act 1942;”.

Amendment No. 8 is a technical amendment necessary to define and ensure financial providers used by licensees are either subject to regulation by the Central Bank here, by the ECB in the case of licensees located in the wider EU, or by similar financial regulatory authorities in EEA member states. The term “regulated financial service provider” was inserted into the Central Bank Act 1942 by the European Union Single Supervisory Mechanism regulations in 2014 and the Central Bank Reform Act 2010.

On amendment No. 42, at present, section 74 provides that where a person is operating without a licence or is offering unlicensed gambling activities or services in the State, the authority may order the blocking of receipt of payment of moneys to a bank on behalf of that person. The purpose of the amendment is to broaden the scope of this power by updating the section and inserting the term “regulated financial service provider” consistent with the Central Bank Act 1942. The effect of this amendment means that the authority will now be able to seek orders against any financial service providers that come under the remit of the Central Bank, the European Central Bank, similar regulatory bodies in the EEA or any other bank outside the State. Far closer to home, many gambling companies have their headquarters and banking facilities in the United Kingdom. These will not be subject to supervision by the Central Bank or the ECB, nor will they be part of the EEA.

I will move to amendments Nos. 70 to 72, inclusive. Section 130 provides that licensees are required to have segregated customer accounts for the purpose of holding customer-related funds. The key aim of the section is to act as a safeguard for customers' money to avoid the potential for inappropriate use of such money by a licensee and to ensure there is appropriate record-keeping in respect of customers' money. While these amendments are technical, their purpose is to protect persons participating in gambling. Amendments Nos. 70 and 71 delete and replace the reference to a bank in section 130(7) with the term "regulated financial service provider”, with the effect that a licensee will have to establish segregated customer accounts with financial service providers that come under the remit of the regulatory and oversight bodies I mentioned. Amendment No. 72 is a technical and consequential amendment to amendments Nos. 70 and 71. It replaces the reference to banks in section 131 with a reference to “regulated financial service providers” instead.

On amendment No. 96, section 211 provides that the authority may apply for temporary court orders to address the situation whereby a gambling licensee is, in the opinion of the authority, in breach of a relevant obligation or where there is a need to act quickly to protect either the public or client funds in a segregated customer account from serious consequences. The temporary court orders will be interim in nature and can be used in a responsive and protective manner for a restricted period until the authority takes further steps to address the matter concerned. These orders may include the blocking of financial payments to or from a licensee's account and measures to protect moneys lodged to a segregated customer account. Similar to the amendment to section 74, amendment No. 96 will broaden the scope of these orders by updating the subsection through inserting the term “regulated financial service provider” consistent with the Central Bank Act 1942. The effect of the amendment means the authority will now be able to seek orders against any financial service providers that come under the remit of the Central Bank, the European Central Bank, similar regulatory bodies in the EEA or any other bank outside the State.

With these amendments, the authority will be able to seek orders and take action against those banks and financial providers operating on behalf of unlicensed operators outside the State that are not subject to supervision here, in the EEA or the EU, where necessary, to protect our citizens who participate in gambling and those operating in a licensed and responsible manner within the State.

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