Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

5. To ask the Minister for Finance his views on the lists of politically exposed persons under Anglo Irish Bank-Irish Bank Resolution Corporation; the reason lists were deemed necessary; the way they have been used; if he was aware of the lists and the contents of these lists; and if he will make a statement on the matter. [1757/14]

Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

This question arises from reports in recent weeks that the Irish Bank Resolution Corporation, IBRC, or Anglo Irish Bank, as it was previously known, compiled a list of politically exposed persons and high profile persons who were borrowers from the bank. The question seeks to find out why the bank considered these lists necessary, what knowledge the Department of Finance and the Minister had of them and what use was made of these lists.

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am advised that Anglo Irish Bank, IBRC Limited and now IBRC Limited, in special liquidation, has a legal obligation under the Criminal Justice Act 2010 to determine whether a customer, or a beneficial owner connected with the customer or service concerned, being a customer or beneficial owner residing in a place outside the State, is a politically exposed person or an immediate family member, or a close associate, of a politically exposed person, PEP. According to the Criminal Justice Act 2010, a PEP is defined as:

“an individual who is, or has at any time in the preceding 12 months been, entrusted with a prominent public function, including either of the following individuals (but not including any middle ranking or more junior official):

1.A specified official;

2.A member of the administrative, management or supervisory body of a state-owned enterprise.”

The special liquidators understand that customers and borrowers of IBRC Limited, in special liquidation, were included on such lists in accordance with the provisions outlined above. The inclusion of customers on these lists was standard business practice and in no way indicates that preferential treatment was afforded to these customers.

Addition information not given on the floor of the House

Under the terms of the relationship framework between the Department of Finance and IBRC, the board and management team of the bank retained responsibility and authority for determining the bank’s strategy and commercial policies and conducting its day-to-day operations, including meeting its obligations under the Criminal Justice Acts. While the Department was aware that the bank managed its obligations in this way, neither I nor my officials were provided with the contents of the PEPs lists.

Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

The Minister says these lists were compiled in response to the 2010 Act. When were the lists compiled in response to it? How do we know, and what assurances can we have, that these politically exposed persons or high profile persons did not receive any preferential treatment when dealing with their accounts in this institution? It is vital that people be reassured that these lists were not compiled in order to identify people who could receive preferential treatment.

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The lists were compiled before the liquidation took place, but I do not have the exact date. It was compiled by Anglo Irish Bank and IBRC prior to the liquidation taking place. It is part of the process of the liquidation to ensure that nothing untoward happened and if the liquidator comes across anything that could be deemed a criminal offence, he has an obligation to report that to the Garda Síochána. So far, the special liquidator assures me that he has not encountered anything which would amount to malpractice or the like. His study of those issues is ongoing, but I am not the person to whom he would report. However, in conversation with him about the process of the liquidation these things arise.

The main point is that this was not an initiative taken by IBRC to list its well known customers for any other purpose than complying with the Criminal Justice Act 2010. It is to do the opposite of what the Deputy suggests, to avoid preferential treatment being given to people because of their place in society, because they were important in a State agency or because they had political power.

Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

The issue with politically exposed persons is that the political exposure could be used in different ways. Some high profile people who appear to be on the list have received debt write-downs from the IBRC, while other people have been taken through the full remit of the courts and the law and have been bankrupted in the course of that. We must be assured that these lists were only complying with the Criminal Justice Act 2010 and that no preferential treatment was given to anybody on them. It is incumbent on the Minister to ensure that is the case. Perhaps the Minister would also inform me of the date these lists were compiled.

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I believe I dealt with the issue. Many members of the public would find it surprising that this provision is in the Criminal Justice Act 2010 but, on reflection, it is quite a good provision. I hope it is being honoured across the banking system. I will get that date for the Deputy and communicate in writing to him.