Dáil debates

Thursday, 18 April 2013

Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2013: Second Stage (Resumed)

 

Question again proposed: "That the Bill be now read a Second Time."

12:10 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Deputies Ross and Mattie McGrath are sharing time.

Photo of Shane RossShane Ross (Dublin South, Independent)
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I welcome this Bill as something which is more than necessary. The calm and measured way in which it is being introduced and welcomed in this House suggests it is almost a rubber-stamping procedure, it would automatically go through and there is not really anything important behind it. That disguises to some extent the alarm bells that had been ringing on money-laundering, not only in the world but, specifically, in Ireland.

Most Members of this House will be aware that several of the largest banks in the world, included the blue-blooded Coutts Bank in the United Kingdom and the HSBC overseas, have been involved in fairly massive money-laundering in the past decade much to the surprise of the innocent who feel that big banks somehow do not get involved in this sort of thing and have been outed for doing so.

There is a global body to which the Minister referred call the Financial Action Task Force, FATF, which was set up in 1989 to counter this on a global basis. I will not say it has been singularly unsuccessful but it has certainly been unsuccessful because money-laundering to the extent of 2.7% of global GDP has been carried on a fairly regular basis.

This is a chronic problem, by definition not discovered. As new rules are introduced, it is a little like how accountants behave after a budget. In this case, the criminals find new ways of by-passing these new rules. It is a serious global problem and in measured terms, if the 2.7% figure is correct, it is one which needs tackling urgently and has not been resolved.

Why, in Ireland, are we introducing this Bill? It is because it is a fairly urgent problem here as well but it is something which, when commentators talk about it, tends to turn one off. The Bill is somewhat technical and the Minister's speech is full of acronyms and terms which make it difficult to understand, but the problem is considerable.

The Bill comes in the wake, not of calm automatic background measures which are introduced on a regular basis but of a serious warning by the Central Bank last year about Ireland's compliance with money-laundering standards. Ireland's compliance with money-laundering standards have been fairly pitiful. In October last, the Central Bank warned that the country's banks and financial institutions are failing to comply fully with the law on money laundering. The Central Bank supervisory team wrote a letter to the chief executives of all Irish regulated banks and financial institutions in the country in which it warned that the regulator may take enforcement action against institutions that are found to be in breach of the law.

They had carried out an 18 month inspection that audited those 60 financial institutions across the country and those inspections revealed what it called "a significantly lower level of compliance" with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 than had been expected. That is Central Bank speak for a pretty slovenly compliance regime in Ireland. It does not like spelling this out because of the ripple effects it might have overseas with consequent reputational damage. It stated that Irish firms should bear in mind "the reputational considerations both for the financial services industry and Ireland as an international financial services centre".

As a result of our non-compliance Ireland was put on what is called the follow-up process by FATF, the international body, which means we are on watch for not complying and are in the bad books of the international policemen who inspect how we are behaving. One would not think that from what we heard today - one would think this was some sort of regular automatic routine Bill, but it is not. It is required in order to remedy that we are in a follow-up process meaning we are under the watchful eye of the inspectors or the international regulators because they do not like what they see.

I welcome that the Bill has been introduced. In his speech the Minister specifically asked us to pass it by June because the Government does not want to have to attend the FATF conference not having complied and not having introduced the necessary legislation to ensure we are ranked higher by the FATF process. It is an admission that for a long period of time the law in this area and practices in this area have been inadequate. For that reason we should welcome the Bill. However, given that we have had such a banking crisis since 2007-08, it is incredible that this particular area has not been properly tackled. Let us hope that this takes us away from the follow-up process, that we enforce the law properly and that it is internationally recognised that we are doing so.

Underlying this is the importance to Ireland of the IFSC. We have always patted ourselves on the back about the IFSC and since its introduction in 1987 it has been a significant success for Ireland. Let us recognise the role of former taoisigh, Albert Reynolds and Charles Haughey, and others, who, for all the bad things that some of them have done, had some sort of vision for the IFSC. It has been successful because it has brought a huge amount of international interest to the country, global investment and jobs. The jobs and spin-off effects have been fantastic, which must be recognised.

However, there has always been a question mark around the IFSC and how it is being regulated. There has always been some concern that there are too many so-called "brass-plate" bodies in the IFSC - referring to organisations that only exist for money to go through. There has always been some concern over the identity of those sending money through, producing, of course, some limited amounts for the Exchequer, because the profits are made here and therefore they pay tax here. There has always been some concern that there are so many organisations, and always have been, which do not give a great deal of employment, but are registered here and have put up a brass plate. They are not banks, dealers or stockbrokers. They do not do anything particularly constructive in the financial world. There is no market there as such for what they are doing. The Bill, apparently, is to address that particular problem because of the potential reputational damage to which the Central Bank referred last year. It is possible that reputational damage is being done.

In 2005 The New York Timesreferred to Ireland as the "Wild West of European finance". That referred directly not just to the antics of Anglo Irish Bank, Irish Nationwide Building Society and others, but also to the possibilities for disasters and indeed those that had happened in the IFSC at the time. The reputational damage must be repaired or at least the reputation protected and the Bill goes some way towards that. If our reputation is damaged, the competitiveness of the IFSC will immediately deteriorate. We must remember this is not some kind of protected entity. The IFSC is in direct competition with London, Luxembourg and other financial centres throughout the world. If we get the reputation for not complying and being in the rear-guard of those who are complying with anti-money laundering rules that have been set, we will attract the wrong type of money and the wrong type of interest. While we have no figures on this, given that we were behind and it is necessary to do this in a hurry and that we were considered to be not complying properly I hope it does not mean that has already happened.

There are real threats to the IFSC from elsewhere. It is a hot debate now and I know I would be in a minority on this side of the House on this as I support the Government very strongly. There is a real danger of the introduction of a financial transactions tax, FTT. If that is introduced there would be a real danger of a movement from here to the UK where it will not be introduced. We must not introduce a FTT which would result in money flowing out of here into Luxembourg and other financial centres. Other financial centres setting up outside Ireland are pointing the finger at us and looking to attract that money. Jobs would be lost. Companies that set up here have no affection for the place. They leave at dawn in slippered feet and that is the end of the story. Let us comply strictly and let us move from the bottom or the middle of the list up to those nations which are complying as fully as is necessary.

Deputy Mac Lochlainn rightly referred to other incidents that have been so damaging to us, including Ansbacher. Wearing my patriotic hat, I am very glad it has not travelled too far from these shores. I do not know if the Ansbacher people broke money-laundering laws, but they certainly moved their money out and broke exchange-control laws. Not only has none of them ever been sent to prison, none has even been charged with anything.

There were 120 of them. What message does this send out? It sends out the message that there is something pretty loose about compliance and enforcement in Ireland. People who pushed their money off to the Cayman Islands and elsewhere got away with it, but during a similar period those doing almost exactly the same thing, small operators who put their money in the United States to avoid DIRT at the behest or under pressure from the bank manager, were prosecuted. For years, Stubbs Gazette published all of those who put offshore what were small deposits compared to the Ansbacher people, who had made settlements and who had been prosecuted. They were named and shamed while the Ansbacher people made big payments and it was the end of the story, although they were participating in a massive tax evasion exercise. How did this happen? I do not know. Several weeks ago I asked the Revenue Commissioners about it at the Committee on Public Accounts and they spoke about the passage of time and that it would be difficult to do anything or prove anything, so they just took the money and did not think it was worthwhile prosecuting. Not one of the 120 people fiddling millions was touched. This is extraordinary. It sends out the wrong message. It sends out the message that we are not really a compliant nation and, of course, that if one is rich one gets away with evading tax but if one is poor one does not.

What is the story with casinos in this country? I am not anti-casino because I must confess to an extraordinarily wild youth when I spend half my life in casinos in my teens and 20s. Are they legal or illegal? Are they policed or inspected? Are they watched, because casinos are one of the main avenues for money laundering? People can put half their money on red and the other half on black, lose half of it and walk away with a cheque for the other half from the casino and it is properly laundered in this way. Casinos here seem to operate in a twilight zone of semi-legality. If they do operate in such a twilight zone does it mean they are not inspected because they are not legal, or are they rigidly regulated?

12:30 pm

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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I am pleased to speak on the Bill. The Financial Action Task Force recommendations include more transparency on ownership and control of companies, trusts and other legal persons; the clarification of rules on customer due diligence to ensure better knowledge of customers and better understanding of their business; the expansion of provisions dealing with politically exposed persons to cover national and international organisations; including tax offences as a predicate offence to money laundering; and more effective international co-operation. Deputy Ross mentioned flowery and vague language which is difficult to understand. Surely these recommendations are prerequisites and we should already be co-operating.

This week Ireland will chair a meeting on this issue and I wish the officials well in this regard. We have been exposed around the world as being weak in this area, and our financial crisis has surely laid bare any illusions of Ireland being a compliant country with strong laws. We have two Irelands, one for the rich and big business and another for PAYE workers and small businesses. The latter groups used to be the middle class, but have now been corralled into desperate poverty, penury and destitution while those in the Ireland which wrecked the country, who amount to fewer than 100 and possibly fewer than 50 or 60 people, have not yet been fully arraigned and brought before the courts. We hear talk about charges being brought and I do not know how many thousands of documents have been filed in the Garda investigation.

We have had no proper investigation of the banking crisis. The Ansbacher accounts were mentioned and the most recent financial crisis probably started much earlier than 2007 or 2008. We have had no meaningful investigation whatsoever because we are protecting senior people of past administrations. It must be the same for the current administration because it promised everything including burning the bondholders-----

Photo of Shane RossShane Ross (Dublin South, Independent)
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Hear, hear.

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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-----but nothing has been done. We have no meaningful accountability from senior politicians, senior officials, regulators, Central Bank governors and bank chairman. What we did was to increase their wages and bend or broke the rules to allow this despite the promises made. Consider how the staff of the former Anglo Irish Bank and the IBRC have been treated. They are badly needed to help the receiver follow the money and the wrongs done, but they are in a bitter dispute because they were promised by the Government that they would be protected and looked after but, for a small amount of money in the overall scheme of things, they are being held up as scapegoats and denied reasonable respect for their valuable work and what they try to do as ordinary workers. They are not the top elite which ruined the country and went mad. Most of the banks must take responsibility also. They all followed the lead set by Anglo Irish Bank, although they stated they had to do so.

Serious concerns have been raised about the IFSC because we are seen abroad as a bandit country which does not hold accountability in high regard. Former politicians, governors, regulators and senior officials are swanning off, with some promoted to Europe to get them out of the way at all costs in case there would be an inquiry and answers would be needed. What else would we be seen as but a rag bag of a republic or a banana republic? This is why we had such a low turnout in the Meath East by-election and why we will continue to have low turnouts. People are sick and tired of politics and what we have allowed to happen after the men and women of 1916 and 1921 fought so hard for our independence. Their memory has been besmirched by the antics of what has happened here over the past 20 years, particularly over the past ten years. It is disgraceful.

Retail Ireland has stated rogue activity amounts to almost €1 billion annually. The Croke Park II agreement has been rejected, and rightly so in my opinion, because we were trying to crucify ordinary workers again for €300 million this year and €1 billion over three years, while almost €1 billion, and perhaps much more about which Retail Ireland knows nothing, has been siphoned off in the black economy. We let this go on. I do not know when I last met a customs official on the road. It is a pity the Minister for Justice and Equality is not here. These officials are not on the road any more because their staff numbers have been cut back. They do not have vehicles or resources. A blind eye is being turned to criminality, drug barons and money-laundering. Mention was made of Limerick and Dublin crime gangs. I compliment the Gada and the people of Limerick for how they have fought back and regained the good name of their city, which has been a proud place since Patrick Sarsfield's time. My town of Clonmel, the capital of south Tipperary and second biggest inland town in the country, operates on a shoestring with regard to Garda numbers and resources.

I welcome the officials coming to Dublin this weekend and I hope they give a strong message to the Government and official Ireland that all is not well here, that we are not playing ball and that the fight against crime is muffled, with one hand behind our back and one eye covered with a patch. This is what the Minister for Justice and Equality has done. Last night he made a correlation between the rejection of the Croke Park II agreement and recruiting more gardaí, which he promised a month ago and which his colleagues in Tipperary welcomed. The doors of Templemore were going to be opened again and everything was going to be fine.

We know how long it takes, however, and the figure is now down to 13,200. We know the basic required level is 13,000. It is wrong to say that it is because of the failure to ratify the Croke Park II agreement. Last week, another Minister threatened a 7% pay cut. It is Government by diktat and bullying. That is all going on while gardaí do not have the resources or numbers. Above all, they do not have the respect, co-operation or support of the Minister for Justice and Equality. Thankfully, someone spoke to the Minister in the last ten days at a senior level in Government and made him change his ways on recruitment and basic civility between An Garda Síochána and himself. Some long-awaited promotions were carried out which were required to fill vacancies created by people who had left. How can we fight crime or support legislation such as the Bill before us when morale is at an all time low in An Garda Síochána and the Defence Forces?

Army battalions are being disbanded while barracks are being closed. Clonmel had an army presence for 350 years, yet the lovely barrack buildings are now going to rack and ruin, all in the interest of cuts. I do not know what vested interests the Minister seems to have. I have already questioned how he can be Minister for Justice and Equality and Minister for Defence. Is there a constitutional issue there? I do not have the expertise to decide on that, but a little more respect would go a long way.

The banks and a handful of big business people ruined this country, yet none of them has been arraigned. I have been a small businessman for 32 years and I have always known that if one falsifies accounts in any way, for example, by moving money, even €500, between accounts to mislead accountants, it is a simple, naked crime. I cannot understand, therefore, how it can take the fraud squad, or whoever else is dealing with it in the Department of Justice and Equality, until now to prosecute people or bring them before the courts for basic fraud and fooling the accountants. The latter sign off on figures that are provided by self-employed people.

That must be contrasted with ordinary business people, including small farmers and sole traders, around the country who are being persecuted by Revenue and sheriffs. On Monday night, I attended a suicide awareness meeting in a packed hotel in Clonmel. The county coroner spoke and in the past he has referred at inquests to State terrorism. We must tackle that first, alongside tackling the other terrorism, which I totally abhor. We must sympathise with the people of Boston this week. We do not yet know what happened near Waco in Texas, but it is so sad to see anything like that.

The State cannot tackle terrorism on the one hand while allowing it on the other hand. How can Revenue be allowed to charge 1.25% interest per month, which is 15% annually, on people whom its decides owe it tax? I am not saying that anybody should get away with a penny of unpaid tax, but Revenue has a merciless approach. I have been speaking to Revenue officials today about a case in County Limerick where sheriffs have visited a family and devastated a business that existed for 35 years. When I attempted to intervene and deal with Revenue officials, they accepted my good offices but said the business had to come up with €15,000 by 5 p.m. tomorrow or else the sheriff would be back. The Revenue Commissioners do not have a clue what is going on in Ireland, especially in the agricultural sector, or any other economic area. The fields are barren and as bare as the Dáil benches. We had a terrible year in 2012, followed by a long winter and a horrible spring. Traders cannot get paid for their work and staff wages cannot be paid either, even though these people are making an effort to deal with Revenue. However, those who give Revenue the two fingers are not arraigned at all, despite threatening and intimidating officials.

This Bill also needs to rein in overly ambitious sheriffs using bully-boy tactics under outdated legislation. To be fair to gardaí, they do not understand the situation. They think that when a sheriff comes with a warrant, which was not even signed in the case I am talking about, everything is all right. This situation must be dealt with because we are draining the lifeblood out of our recovering economy. It will kill the entrepreneurial spirit of small businesses, including farmers, sole traders, shopkeepers and self-employed tradesmen.

We have been talking about the Construction Contracts Bill for three years, thanks to Senator Feargal Quinn, but it is still not in operation. That is because big companies do not want to be wound up. They have the power and are supported by the State, the Construction Industry Federation and all the other big business organisations. As Shakespeare wrote in Hamlet, "Something is rotten in the state of Denmark", but it is rotten in this country too, given that we have allowed these unbelievable tactics by big business and bankers. In addition, organs of the State are persecuting people and every letter they get threatens a jail term, yet the authorities cannot put in jail those who should be imprisoned, or even bring them before the courts. They will not be touched and it stinks to high heaven. Such people were protected by the previous Administration and, consequently, are also being protected by this Administration. It is time we woke up and smelled the coffee because people will not stand for this.

I appeal for someone to examine how Revenue can charge 1.25% monthly on outstanding invoices, as well as sending the sheriff with a notice, plus his charges. They can put seized machinery on sale at an auction in Dublin with no VAT advertised on the website. I have asked Revenue to explain how these machines, which are seized on foot of a warrant, can be sold off for half nothing. Huge charges are incurred by Revenue with rogue people employed to collect these machines. They are nothing more than bandits creating misery from people's sweat and blood. They can then advertise the seized assets on websites with no VAT. Anyone in business earning over €14,000 per annum must be registered for VAT, so how can Revenue sell these machines without VAT? Does this have implications for the overall settlement by unfortunate businessmen with Revenue? It must have because there is no VAT.

We must examine our own house first. It is a pity the Minister for Justice and Equality has left the Chamber. As Deputy Ross said, it is also a pity that this has been put in flowery language to try to cover up our inadequacies. We cannot carry on this cover-up for much longer, however. We have been found out by Europe and elsewhere internationally. The IMF knew we could not pursue the austerity policy and they have told us so now. This has been laid bare. We have a cosy cartel and a cover-up while crucifying and screwing the poor and ordinary people to allow for the downright sins and blackguardism of the 100 people, or fewer, who brought this country to its knees. Meanwhile, they continue unhindered and have not been brought before the courts. I will not say they have been found guilty because that is up to the courts, but we all know it is the biggest cover-up that ever went on in any country. The sooner it is exposed the better.

12:40 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Hear, hear. The Deputy is right.

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Fine Gael)
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The Bill before us seeks to amend the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. This is in light of the deficiency identified since its operation over the past two years, and also to enhance Ireland's compliance with the Financial Action Task Force standards following its evaluation of the 2010 Act. The 2010 Act consolidated the existing legislation in line with international standards. The Act also transposed the third money laundering directive into Irish law. The Financial Action Task Force is an inter-governmental body whose purpose is to develop and promote policies to combat money laundering and terrorist financing.

The overall aim of the Bill is to strengthen and clarify measures to deter, detect and disrupt money laundering and terrorist financing. The Bill seeks to make amendments and, in so doing, make Ireland's anti-money laundering legislation more robust. This is in light of the experience of the 2010 Act's operations over the past two years. The main proposed amendment relates to customers' due diligence measures. This involves taking steps to identify customers and check whether an alleged identity is correct. Other proposed amendments include specific requirements for policies and procedures, and keeping customers' due diligence data and information up to date. The Bill also proposes to strengthen monitoring measures of designated persons. In addition, it includes a requirement for policies and procedures on measures to be taken to prevent the risk of money laundering or terrorist financing which may arise from technological developments.

Money laundering is a process whereby the proceeds of crime are disguised in order to conceal their illicit origins. Financing terrorism is the provision of support to those who engage in, encourage or plan terrorism. When criminal activity generates substantial profits, the individual or group involved must find a way to control the funds without attracting attention to the underlying activity or persons involved. Criminals do this by disguising sources, changing forms, or moving funds to a place where they are less likely to attract attention.

Due to the underground nature of money laundering, it is not possible to give precise figures regarding the extent of the activity. According to a 2011 report by the United Nations Office on Drugs and Crime, in 2009 criminals and drug traffickers in particular may have laundered approximately $1.6 trillion or 2.7% of global GDP. This figure is consistent with the 2% to 5% range previously established by the International Monetary Fund to estimate the scale of money laundering. The process of money laundering involves three stages, the first of which is the initial or placement stage, whereby the illegal proceeds of crime are introduced into the financial system. This may be done by breaking up large amounts of cash into small less conspicuous sums that are then deposited into a bank account or by purchasing a series of monetary instruments such as cheques or money orders that are then collected and deposited into accounts at other locations. The second or layering stage involves a series of conversions or movements of funds to distance them from their original sources. This may be done by the purchase and sales of investment instruments, by wiring the funds through a series of accounts at different banks across the globe or by disguising the transfer as payments for goods or services, which may give them a legitimate appearance. The third or integration stage involves the re-entering the funds into the legitimate economy. This may be done by investment of the fund into, for example, real estate, luxury assets or business ventures. The current definition of "vocational transaction" provides that once the transaction or series of transactions exceed €15,000, obligations such as customer due diligence apply. Section 2 of the Bill amends this and lowers the monetary threshold to €2,000 in the case of a private member gaming club and €1,000 for wire transfers of funds. In all other cases, the definition applies when an amount of €15,000 is reached.

12:50 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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I thank the Leas-Cheann Comhairle for the opportunity of speaking on this new legislation. I welcome this important and urgent debate, as it is highly relevant to the modern world and, in particular, to the major crisis that exists both in Ireland and across the European Union, as well as internationally. In recent days, Members have seen the horrific effects on innocent people in Boston, as well as the slaughter of ten innocent children in Afghanistan two weeks ago. It is important to focus first on the victims of these heinous crimes. Blowing people to bits in Boston, Afghanistan, the West Bank, Omagh, Dublin or Monaghan should never be an option and should never be acceptable in any democratic society, nationally or internationally. The bottom line is it is completely unacceptable and Members should agree with this core principle. This is known all too well in this country and I commend all those who started our own peace process, faced up to the reality and used their skills in conflict resolution. Members should never forget and all should be vigilant to prevent it happening in the future. One should never take the peace process in Ireland for granted and all Members of the Oireachtas should be on their guard in respect of this issue.

As for the legislation before Members, I was absolutely shocked and horrified when I saw some of the figures illustrating the scale of the problem. Due to the underground nature of money laundering, it is not possible to give exact figures in respect of the extent of the activity. However, according to a report produced relatively recently, that is, in 2011, by the United Nations Office on Drugs and Crime, in 2009 criminals and drug traffickers in particular may have laundered approximately $1.6 trillion or 2.7% of global GDP. This figure of $1.6 trillion internationally is a lot of money on which many countries could survive, particularly during the current economic crisis. Moreover, the figure is consistent with the 2% to 5% range previously established by the International Monetary Fund to estimate the scale of money laundering. It is important to consider the scale of the crisis internationally. When one then turns to the details of money laundering, it is the process whereby the proceeds of crime are disguised to conceal their illicit origins. The financing of terrorism is the provision of financial support to those who engage in, encourage or plan terrorism, because this all costs money. According to the World Bank, money launderers send illicit funds through legal channels to conceal their criminal origins, while those who finance terrorism transfer funds that may be legal or illicit in origin in such a way as to conceal the source and ultimate use, which is to support terrorism. The Financial Action Task Force, which is an intergovernmental body established in 1989 by the G7 group of countries to combat money-laundering, explains the concept of money-laundering in the following terms. When a criminal activity generates substantial profits, the individual or group involved must find a way to control the funds without attracting attention to the underlying activity or to those involved. Criminals do this by disguising the sources, changing the form and moving the funds from place to place, where they are less likely to attract attention. Again, I will focus on the details in respect of this aspect of the legislation.

It is important to get the facts right before having the balance and discussion. When one discusses the issue of money laundering, one must also keep a close eye on its close link, that is, to white-collar crime, because many so-called "respectable" individuals and businesses are directly involved in such activity. This is not acceptable and a justice system is required that ensures those involved in white-collar crime are prosecuted, charged and hounded. In addition, one must also accept the reality that people and states are involved in these issues. I saw an interesting programme this week broadcast by RTE, which dealt with Liberia, an extremely damaged country in Africa and the ongoing scandal there regarding diamonds. It showed how all the diamonds are being shipped out legally, while people are living in muck and dirt without toilets or water. Moreover, massive wealth is being generated there in this regard. Consequently, I believe there also is a political dimension to this debate, which is it is not simply or exclusively about the illegal stuff, as some of the activities that are taking place in states or internationally are unacceptable, full stop.

It reminds me of the time in the 1980s when the merits of the Criminal Assets Bureau were being debated and I commend all those who were directly involved in it. I also will use this opportunity to pay tribute to my old colleague and friend, the late Tony Gregory, who was one of those who initially pushed for its establishment during the heroin crisis in the north inner city during the 1980s. He wanted the money confiscated from the drug gangs and drug lords to be pumped back into the disadvantaged communities. Tony was ahead of his time and most people who take an objective view on this issue would commend him and praise them. Consequently, it is fitting that Members honour him today in this debate when discussing these issues. I will go one step further in this regard. At present, a beautiful new bridge is under construction near the centre of the city and I propose it be named the Gregory Bridge, after Tony Gregory and in his honour. Moreover, this is related to the issue under discussion.

In addition, casinos must also be closely monitored when it comes to money-laundering. Nationally and internationally, there are casinos into which much of this money is dumped. Similarly, there are bookkeepers, bookmakers and others who have similar links and Members must be very careful of such groups. I am familiar with this issue from my experience of dealing with issues in my own constituency, where the drug gangs run parts of the city. Sadly, I refer to the amount of money that is made, the amount of money that is ripped off and the massive intimidation that takes place in communities. Members must stand up for those who are suffering at the hands of such people. Their money must be confiscated and I emphasise this money must be put into the most disadvantaged areas. One cannot have a situation in which drug gangs, drug leaders and people like that are amassing amounts of money, are getting involved in shootings and killings from which people walk scot free, as well as intimidating entire communities. This is the sad reality for many people in the Ireland of 2013.

A small point, which I regularly raise in this Chamber and for which I am regularly hammered and criticised, concerns the debate on cigarettes. There is a very significant trade in illegal cigarettes. I have met shopkeepers and people with small and medium-sized businesses on the front line who tell me that by not taking action regarding illegal cigarettes, €600 million per year is being lost in tax revenue. I note that this week the figure of €300 million is being discussed in the context of the Croke Park II deal and the amount of revenue that must be found by the end of July.

Revenue has lost through the illegal trade in cigarettes in the region of €600 million. Imagine the massive work and impact that would have if the Revenue Commissioners could bring that money in to provide services for people. This is a criminal activity which is directly involved with money laundering and it finances people with whom most people in this House would have absolutely nothing to do.

The overall aim of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2013 is to strengthen and clarify the measures to deter, detect and disrupt money laundering and terrorist financing. The important words are "deter, detect and disrupt". That is the core of the legislation. The Bill seeks to make amendments to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 and so to make Ireland's anti-money laundering legislation more robust. I welcome that. We need to tighten up. We need to up our game and this Government needs to wake up and smell the coffee. The Minister for Justice and Equality needs to deal with the real issues and stop getting into trouble and rows with judges and other people when he should be focusing on the issues affecting the people in this country. This Bill is introduced in light of the experience of the operation of the Act over the past two years and to enhance Ireland's compliance with the Financial Action Task Force, FATF, following the FATF's evaluation of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. I also welcome that work.

The FATF is an inter-governmental body established by the G7 countries in 1989 in order to combat money laundering. It is regarded as a leading forum for international efforts to combat money laundering. It has issued a series of recommendations which aim to give guidance on the standards for combating money laundering and terrorist financing. The FATF recommendations have been amended several times, most recently in February 2012. I will address these when dealing with my amendments on Committee Stage. Three anti-money laundering directives have been introduced in order to reflect these recommendations with a fourth directive proposed to implement the new changes. It is important that we focus on this.

We have a very strong self-interest in this legislation because of the reputational risks for Ireland as an international financial services centre. This has also been identified as a result of failure to comply with the anti-money laundering, AML, measures. Many of us are proud of our International Financial Services Centre, IFSC, but we must be vigilant lest the wrong elements exploit it and we must have regulation to ensure that straight money, not hot money, goes through the system. That is very important to prevent damage to the integrity of the financial services industry here. Many people who work in the IFSC, have concerns about that. We regularly hear moaning and whinging about the need for tight regulation. We must keep an eye on this and on the dodgy characters, the money launderers and those who are shipping the money in and out of accounts.

I read a figure over the weekend for offshore bank accounts in the region of €45 million. The Revenue Commissioners took in that sum but I would say there is much more money out there. Meanwhile we have rows here in the Dáil about the mobility allowance and all sorts of allowances that cost €10 million or €8 million or €13 million. Then one reads about the loss of €600 million through the sale of illegal cigarettes. Small businesses have told us about this at committee meetings. We have heard the facts, we have looked at the statistics. I harp on about smoking but when I buy 20 cigarettes I pay a considerable amount of the cost in tax. I have no problem doing that but I do have a problem with those who are involved in cigarette smuggling and illegal sales who are costing this State €600 million in lost revenue. We should wake up and do something about this problem.

It is important to consider the main changes in the FATF recommendations, which state:

Combatting the financing of the proliferation of weapons of mass destruction through the consistent implementation of targeted financial sanctions when these are called for by the UN Security Council. Improved transparency to make it harder for criminals to conceal their identities or hide their assets behind legal persons or arrangements. Stronger requirements when dealing with politically exposed persons, PEPs.
A politically exposed person is one who has been entrusted with a prominent political function. I like that angle. There are many politically exposed persons in this Chamber every day but this has a special meaning in this legislation. FATF also proposes "Expanding the scope of money laundering predicate offences by including tax crimes".

There is something wrong with our justice system when people who are blatantly breaking the law get away Scot free but a small business man who used a scam to import garlic from China is sentenced to six years in prison. Rapists, murderers and child abusers get three or four years but a man who put his hands up and paid back the tax he owed was sentenced to six years. Thankfully on appeal the judgment was reversed and he was released. He should have been given community service. That kind of sentence is off the wall and is not part of a proper justice system because there are other more serious issues to deal with.

The FATF further says we need "More effective international cooperation including exchange of information between relevant authorities, conduct of joint investigations, and tracing, freezing and confiscation of illegal assets". International co-operation is very important. Sometimes this does not happen. Some people are precious about some of those directly involved in crime but we need to be consistent on this.

Section 2 of the Bill proposes to amend section 24 of the 2010 Act and the definition of "occasional transaction" under that provision so that wire transfers of funds of up to €1,000 or more are included in the definition of customer due diligence, CDD. These measures will also apply to beneficial owners of such funds. Further, the monetary threshold is reduced from €15,000 to €2,000 for private members' gaming clubs for the application of customer due diligence measures. Section 8 proposes an amendment to section 54 (3) of the 2010 Act in order to insert an explicit reference to the requirements for policies and procedures on keeping the CDD data and information up to date and also on the additional proposed enhanced CDD measures to be taken in accordance with section 39.

The proposed requirements for policies, procedures and measures to be taken prevent the risk of money laundering or terrorist financing which may arise from technological developments and the way in which services arising from such developments are delivered. This is a new angle. While the people employed by the Garda Síochána are of good quality and those in the Revenue Commissioners are top quality we need to ensure that they have the technological skills necessary to prevent the changes in the criminal world. Criminals use technology to get ahead of the law and order services and we need to be very vigilant about this.

As this is a criminal justice Bill no regulatory impact analysis has been carried out. I am concerned about this. It has therefore not been possible to secure specific information for the potential cost to businesses which may arise as a result of the implementation of the proposed measures in the Bill. I have concerns about this aspect of the Bill. While it is a criminal justice Bill we must be vigilant about it.

Regarding the implications for businesses of compliance with the 2010 Act, information about credit and financial institutions suggests that failure to comply with the requirements under the Act may result in greater financial implications for firms, compared with the costs of introducing these measures. Indicative of this is the settlement agreement reached by the Central Bank of Ireland, the designated authority to monitor credit and financial institutions under the 2010 Act, in June 2012 with a global banking and life company based in the IFSC. The firm was fined €65,000 for failure to demonstrate that it had instructed any of its staff or directors, with one exception, on the law in regard to money laundering and terrorist financing following the introduction of the 2010 Act. In a further case agreement was reached by the Central Bank in 2010 with the Community Credit Union Limited.

In a significant case in the UK, the FSA fined Coutts banking group Stg£8.7 million in March 2012 for failing to take reasonable care to establish and maintain effective anti-money laundering systems and controls relating to high risks including politically exposed persons, PEPs. In a further high profile case, HSBC incurred significant penalties in the US due to its failure to maintain an effective anti-money laundering programme. Under the agreement reached with the US Justice Department, which included a deferred criminal prosecution, something I welcome, the bank must rectify the problems identified, forfeit $1.256 billion and pay $665 million in civil penalties. The bank also faces a fine from the FSA in the UK. Those are significant financial penalties and I raise them because I get sick to the teeth when services for the disabled and for poor, weak, vulnerable and disadvantaged people are cut by €8 million and so on. These penalties will not cause people engaged in the financial services industry a problem.

The Government is in a hole following the rejection of the Cork Park II agreement and needs to find €300 million. Rather than hammering low paid public sector staff, it should be creative. If the Government parties need a sheriff to come in, sort the issues out and get them out of a hole, why not bring in the former Senator, Joe O'Toole? He would talk to the Government and union representatives and come up with a solution. The Minister of State is aware that he would be well able to do it.

1:10 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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He is a great man for ATMs.

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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I am putting forward a constructive suggestion to the Government to call in the former Senator to act as an independent arbitrator to see if they can come up with solutions.

It is all very well for the Opposition to have a go at the Government parties for the sake of it and I will always have a go at them when I think they are wrong but it is important that we put forward constructive funding proposals, a number of which I have mentioned. Significant sums could be confiscated from illegal money launderers and others involved in criminal activity, including drug trafficking. If that money was invested in community services, it would be important.

I welcome the legislation and the common sense arguments in the debate because we all have a duty to save lives and prevent money laundering both in Ireland and internationally. When sums such as $1.6 trillion are bandied about, that highlights the potential to generate revenue in our badly affected economy. Sitting on the fence or standing idly by should never be an option.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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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.

1:20 pm

Photo of Seán KennySeán Kenny (Dublin North East, Labour)
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I am pleased this important legislation is before the House and I am happy to support it. The original Criminal Justice (Money Laundering and Terrorist Financing) Act was enacted in July 2010. The new Bill transposes the European Union third anti-money laundering directive into Irish law and requires firms and persons subject to its provisions to apply customer due diligence measures. These measures are intended to apply to businesses and banks where large transactions occur. The purpose of lower financial limits for private gambling houses is to prevent such entities from becoming places where money and criminal proceeds are laundered. The inclusion of gambling houses in the legislation is particularly welcome given the discovery during the Mahon tribunal hearings that some of the gentlemen who came before the tribunal had connections to such entities. I recall that one particular gentleman had a connection to a type of casino in O'Connell Street where one arm bandit machines operated. I believe he informed the tribunal he used to visit the premises during his lunch break to see how business was going. I am pleased, therefore, that this type of activity is covered by the legislation.

The Bill also covers the obtaining of information about the business relationship involved in transactions, conducting ongoing monitoring of such business relationships to ensure transactions being conducted are consistent with the knowledge of the customer, the business and risk profile, including, where necessary, the source of funds, and ensuring that documents, data or information held are kept up to date.

Different levels of customer due diligence can be applied. A designated person does not have to identify information on the purpose or intended nature of the business relationship of a customer or beneficial owner where the customer is considered to present a low risk of money laundering or terrorist financing. However, the designated person must obtain sufficient information about the customer to satisfy himself that the customer meets the criteria for this simplified customer due diligence to be applied correctly. In circumstances where a high risk of money laundering or terrorist financing is identified, the designated persons are obliged to undertake customer due diligence measures above and beyond normal measures. These are referred to as enhanced customer due diligence procedures. The extent of the additional information sought and any monitoring carried out in respect of any particular customer will depend on the money laundering or terrorist financing risk the customer is assessed to present.

The EU third anti-money laundering directive prescribes three specific circumstances where enhanced customer due diligence measures must be applied. The first is where the customer has not been physically present for identification purposes, while another is in respect of a correspondent banking relationship. It is noteworthy that the enhanced customer due diligence measures also apply to elected representatives and politically exposed persons in the context of business relationships or occasional transactions. This returns me to the Mahon and Flood tribunals which discovered untoward dealings that would not otherwise have come to light. The promised anti-corruption Bill, which will shortly come before the House, will deal with people who were involved in this type of behaviour. It is preferable, however, to have proper business and banking practices in place to avoid such circumstances arising in the first instance.

A third element of the customer enhanced diligence provisions seeks to prevent political support for terrorism in the parliaments of European Union member states. This is a positive development, particularly in the context of terrorism which is sometimes politically motivated. Elected representatives must be open to scrutiny in this regard, as provided for in the new Bill. I welcome the directive and this supporting legislation and commend the Bill to the House.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I welcome this important legislation, which I have called for on many occasions, and compliment the Minister on bringing it before the House. We have learned from the downturn in the economy that there was a lack of adequate regulation, oversight and accountability in certain areas of society. We know where this has brought us.

The financing of terrorism and criminal activity, two areas that are not entirely unrelated, has been brought to the attention of our European colleagues - hence the need for this legislation. The requirements provided for in the legislation are simple measures and are not rocket science. We have all heard anecdotal evidence about businesses where people are unable to ascertain the basis on which they continue to operate. In the current climate, it is important to establish ground rules and principles that will eliminate this type of activity. The time has come to put a stop to behaviour that has been able to get a foothold in society because it has been possible to circumvent legislation.

I hope the Bill will be effective and will do what it says on the tin, in other words, deal directly and forcefully with the issues of money laundering and terrorist financing. Money laundering is the means of funding activity of a criminal or terrorism nature and it is a sad reflection on society that it can take place on what appears to be a legitimate basis.

There is no need to emphasise the level of criminal activity which obtains at present, the number of shootings which have taken place in very suspicious circumstances, the number of threats issued to juries, judges and others or the number of witnesses who have been intimidated. I accept that many of the issues to which I refer have been the subject of separate legislation. There is no doubt that a huge volume of illegal activity has been financed by means of money laundering. I hope that the provisions contained in the Bill will be adequate to address the means by which money is laundered. Certain people may have become accustomed to living on their ill-gotten gains. If fact, these individuals may be of the view that this has become the norm. That is not the case. We have reached the point where the relevant issues must be tackled.

Those involved in criminal activity cannot operate without massive amounts of funding. Such funding continues to be made available. One area to which I wish to refer in this regard is that which relates to the sale of illegal drugs. There is no doubt that extensive borrowing, banking and money laundering facilities are being made available to those involved in this criminal activity. These people do not all operate with cash in their back pockets and neither do they have just one bank account in a particular jurisdiction. Those to whom I refer have multiple banks accounts. The time has come to deal with these people and their rampant criminal activity. I hope the Bill will be part of a suite of legislative instruments which will allow us to deal with the type of activity to which I refer in a meaningful way.

My final point relates to due diligence. When the DIRT inquiry took place, we spent a great deal of time discussing due diligence in the banking, insurance and regulatory systems. We also identified all of the shortcomings which arose on foot of the lack of adequate observance, oversight and due diligence in the context of these systems. Again, this is not rocket science. If simple procedures are introduced and followed, this will ensure that the activities of those in the financial sector will be based on a solid footing. We must ensure that the activities of companies are also above board and I am glad that this matter will be subject of legislation to come before the House next week. We must learn from past experience and put in place the necessary legislative measures to ensure that we do not allow criminal activity to be funded by and from what appear to be legitimate financial outlets and sources. We cannot afford to allow companies to have within their power the facility to allow them to cater for illegal activity on the part of terrorists or criminals. Such activity completely undermines the credibility of our system and the confidence of the public therein. The type of activity to which I refer does massive damage to our image internationally.

I welcome the Bill and compliment the Minister on its introduction. I hope it will have the desired effect.

1:30 pm

Photo of Dinny McGinleyDinny McGinley (Donegal South West, Fine Gael)
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I thank all the Deputies who contributed to the debate for their support for this Bill, which the Minister hopes will be enacted as soon as possible. The main purpose of the Bill is to make some fairly technical amendments to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. We want to ensure that certain provisions are more closely matched to international standards. We also want to take the opportunity to make some changes in light of the experience we have gained during the past two years or so in operating the systems which that Act put in place.

It is clear from the debate that we are all aware of the increasing sophistication of crime, the international nature of it and, consequently, the need to have in place effective structures for preventing and detecting crime. Money laundering, as an offence in itself, does not always come to mind when people think about organised crime. We are more likely to read drug trafficking, robbery or cigarette smuggling. However, it is money laundering which allows criminals to conceal and, ultimately, use the proceeds of their crimes. It is a crime which can be committed on a small or large scale, within and across borders and by seemingly legitimate businesses. The insidious nature of laundering requires robust systems to prevent it and to tackle it when it is discovered. It requires a co-ordinated approach, both domestically and internationally.

Criminals are always seeking new ways to get away with their crimes and I take this opportunity to commend the financial action task force on its work to strengthen international efforts to tackle laundering. I also welcome the excellent work of the European Commission in bringing forward proposals to improve the legislative response to money laundering. By adapting our systems to reflect the changing nature of crime, we can close off any avenues which might be exploited by criminals. The challenge posed by money laundering also requires a co-ordinated approach on the domestic front. While this involves the imposition of a regulatory burden on the financial services sector, lawyers, accountants and others, that burden is a necessary one. It is required to address the behaviour of those who attempt to use legitimate systems - such as the banking system - to circumvent the law. It is not every day that one hears words of thanks being addressed to bankers, lawyers and accountants but I sincerely thank all those whose everyday efforts support the work of the Garda Síochána and the Revenue in tackling this crime.

It is almost a cliche to say that the Garda depends on the support of the community to achieve results. In the area of money laundering, its job would be impossible without the active support of the business community. An individual criminal or a criminal organisation rarely commits a single, simple crime. Quite often they commit complex mosaics of crime, such as manufacturing, importing and selling drugs, for example, and then going on to launder the proceeds. These mosaics must be painstakingly unpicked by gardaí in specialist units - such as the fraud bureau, the drugs unit, the organised crime unit - in local detective units and also by uniformed members. I know the House will join me in extending thanks and genuine admiration to the men and women of all ranks in the Garda Síochána who work so professionally and with such dedication on our behalf to put a stop to these crimes.

The efforts of the Garda Síochána are reflected in the latest CSO crime statistics. They are generally very positive and it is clear that the Garda, with considerable community support, is making a significant impact on crime. The statistics relating to one crime in particular, burglary, itself a predicate offence to money laundering, show positive signs. The increases in burglary seen early in 2012 are being reversed. This coincides with the introduction of Operation Fiacla nationally. I applaud the contribution of everyone involved in this Garda operation. Under Operation Fiacla, as of 31 March some 4,546 persons had been arrested and 2,512 charged.

Having shared the widespread revulsion at a number of appalling and cowardly attacks on the homes of elderly people, I am encouraged by the clear impact of the robust Garda response to those engaged in burglaries.

I appreciate the genuine concerns of communities about the implementation of changes to the way policing is being managed. Fundamentally, the objective of the reforms is to maximise the time that our well trained and highly skilled gardaí spend on operational duties. While concerns about crime are understandable, they should be seen in the context of a decline in most categories of recorded crime, including drugs, public order and assault offences, in the past year.

I will address a number of the points raised by Deputies. Many Members referred to the number of gardaí. The Minister for Justice and Equality has stated several times that he wishes to maintain Garda numbers at 13,000. Yesterday, he stated that there would be a delay in bringing a proposal to the Cabinet on the commencement of a recruitment campaign, as the Government must first reflect on how to effect the savings of €300 million in 2013 that would have resulted had the Labour Relations Commission's pay proposals in respect of an extension to the Croke Park agreement been accepted. The Minister stated that a recruitment campaign could not be commenced without his being in a position to ensure the availability of funding to meet the salaries of additional members recruited to the Garda. He reconfirmed his opinion that it was desirable that Garda numbers be maintained at 13,000 and expressed the hope that he would eventually be in a position to bring an appropriate proposal to the Cabinet.

Deputies also referred to the incidence of white collar crime. The programme for Government contains a commitment that rogue bankers and all those who misappropriate or embezzle funds be properly pursued for their crimes and that the full rigours of the law be applied to them. Within eight weeks of taking up office, the Minister moved urgently to introduce additional legislation. The Criminal Justice Act 2011 was enacted on 2 August of that year and provides vital assistance to the Garda in the completion of white collar crime investigations. The Act has facilitated the more effective use of detention periods by making it possible for persons arrested and detained for questioning to be released and their detention suspended so that further inquiries can be conducted during the suspension period. The Garda Commissioner is aware that any further legislative proposal that he might have that would assist in the investigation and detection of white collar crime, or of fraud offences generally, will be considered positively by the Minister.

This Bill is mainly technical. It is being introduced to avoid a prolongation of Ireland's stay in the Financial Action Task Force, FATF follow-up process beyond June, which could have negative consequences for our international standing. I thank officials in the offices of the Attorney General and, particularly, the Parliamentary Counsel for their work in drafting this Bill under great pressure and with limited resources. If time and resources allow, some amendments originally envisaged as part of the general scheme of the Bill approved by the Government will be tabled on Committee Stage.

I remind the House of the intention to introduce amendments on Report Stage to address the threat to life and limb posed by explosive devices that make use of mobile communications technology. This may necessitate a change in the Title. The amendments' purpose will be to allow for a direction to telephone companies to cease service in limited areas in order to prevent death or damage to property.

This is a relatively short Bill and technical in nature. Nonetheless, it is important in ensuring that our anti-money laundering regime is not only in line with international standards, but is also seen to be so. We will need to review this situation again once the proposed fourth money laundering directive is finalised. In any case, it is only right that we keep our laws and systems for tackling money laundering under review. It is an area to which criminals dedicate much effort and creativity in order to hide the proceeds of their crimes. As such, we as legislators should ensure that our laws in this regard are kept up to date and fit for purpose. I commend the Bill to the House.

Question put and agreed to.