John Curran (Dublin Mid West, Fianna Fail)

I thank Senators from all sides for their positive and constructive contributions to the debate on this Bill. A number of interesting and relevant points were made and I will deal with as many of them possible as we conclude proceedings. Some of the points will also appear as amendments on Committee Stage, to which Senator Cummins alluded, and during further debate. I am glad the Senator spoke on the Bill because it is to it I am confining my remarks.

Some Senators mentioned the delay in getting the legislation to this point and underlined the seriousness of any further undue delay in transposing the third European Union money laundering directive into Irish law. I agree wholeheartedly with much of what has been said. It is time we transposed the directive because it is an important measure and I hope I will have the constructive contribution of all sides of the House in bringing the transposing legislation before the House to enactment without any undue delay.

The Bill is a significant legislative proposal on the part of the Government and is important for the reputation of this country as a financial services centre, a point echoed by Senator Bacik. Effective anti-money laundering and terrorist financing legislation is also important in combating not only the offences set out in this Bill but also the kinds of criminal activity which depend on money laundering to further their ends. It is essential we put every possible impediment in place to combat the activities of criminals engaged in other most pernicious kinds of crimes, such as drug dealing, bank robbery and human trafficking. These kinds of crimes cannot prosper unless the proceeds which derive from them can be disguised as legitimate earnings. This is the purpose of money laundering.

Senators will be aware this Bill deals not only with money laundering but also with the financing of terrorism. International terrorism is an activity which cannot take place without making use of the financial system. The measures contained in this Bill, in particular the requirements for enhanced customer due diligence for certain high risk categories of customer and the requirements for the reporting of transactions to the Garda Síochána and the Revenue Commissioners where there is a suspicion of terrorist involvement will significantly strengthen our existing anti-money laundering and anti-terrorist financing regime.

When the scheme of the Bill was published in 2008, the Government decided a consultation process with all the interested parties should be undertaken to ascertain the views of the various stakeholders. A series of meetings involving the Department of Justice, Equality and Law Reform and the Department of Finance were held with representatives of the legal and accountancy professions, the financial services sector, the Financial Regulator, many of the major corporate law firms in the State, the Garda Síochána, the Revenue Commissioners and others. While it was not possible to accommodate all the views of these bodies in this Bill, their views inform its contents and the very constructive contribution of stakeholders to the process is much appreciated.

The Bill attempts to balance the requirements of the directive and the recommendations of the Financial Action Task Force with the practical requirements of those designated bodies affected by the legislation. We do not wish to create an unnecessary level of regulation and compliance simply for the sake of it. We have no intention of gold plating the directive but we must have legal certainty in what is a criminal law provision concerned with a serious and increasingly sophisticated aspect of criminal activity.

Senators Bacik, Regan and Cummins, among others, raised the issue of the delay in introducing the Bill. This is lengthy and complex legislation, as Senators can see. When addressing this issue we decided to repeal and re-enact the existing anti-money laundering provisions which have applied since 1994 and combine them with the new provisions required by the main directive and the associated implementing directive which was agreed in 2006. As the provisions of this Bill apply to the practices of a wide range of bodies and professions, the Government decided to initiate a consultation process with the stakeholders. There were many positive responses to the initiative and a series of meetings took place between officials in various Departments and stakeholders. Written submissions from interested parties were invited and received. This process may have delayed the final drafting and completion of the Bill but it had the effect of taking into account, where possible and appropriate, the views of many of the bodies which ultimately will be affected by the Bill. While many Senators indicated there was a delay, it is important to acknowledge a significant piece of work was taking place with those who will be charged with implementing the legislation.

Senator Regan asked what would happen if there were any further delay. If we were to fail to transpose the directive and the matter was again referred to the European Court of Justice, there would always be a possibility that Ireland could be fined which would involve a substantial sum of money. We are not contemplating such an eventuality because we are determined to conclude the legislative process in which we are engaged in order that no further action on the part of the European Commission will be necessary.

Senator Quinn raised the issue of the timeframe of the Bill. It is proposed the legislative process in these Houses will be completed by the end of this month and a further three months will be required for full implementation. We do not envisage any further difficulties with the European Commission in that regard.

The Senator also raised the issue of on-line gambling. The Minister has initiated a wide-ranging review of gambling with the purpose of providing Government with options for a new and comprehensive legal and organisational framework for this area. In the meantime he has decided that private members' clubs at which gambling activities are carried on should be included in the Bill. As a result, those clubs which fall within the definition of "designated person" will be required to comply with the obligations and the proposed legislation and will be monitored by a unit within the Department to ensure compliance with these provisions. The Bill provides that such clubs will have to register and that failure to register will be an offence. It does not, however, alter the status of the clubs vis-À-vis our gaming laws. Any regulation of such clubs must await the outcome of the review under way.

Senator Bacik raised a point regarding definitions. Section 25 which lists designated persons includes a property service provider as defined in section 24. The term "property service provider" has been used to reflect the terms used in the Property Services Regulation Bill 2009 which provides for the establishment of a new statutory body, namely, the Property Services Regulatory Authority which will control and supervise providers of property services and improve standards in the provision of these services. When the legislation is in place, all auctioneers, estate agents, letting agents and property management agents will require a licence from the authority.

Senator Bacik raised another point concerning politically exposed persons. The enhanced customer due diligence measure set out in section 37 applies to a customer or beneficial owner who resides outside Ireland. The measure applies not only to the politically exposed person but also to an immediate family member or close associate of the person as defined in the Bill. The definition arises directly — I believe this was what the Senator intended — from the requirements of the third EU money laundering directive and the implementing directive.

Senator Keaveney raised a point specifically concerning bureaux de change. Although many bureaux de change are part of other financial institutions, where a bureau de change business operates on a stand-alone basis, it requires specific authorisation from the Financial Regulator and is regulated with specific reference to money laundering and terrorist financing risks.

Senators Keaveney and Cummins noted that it was good to have this legislation but wondered what were the penalties involved. Senator Keaveney is right. There is a clear distinction in powers between Members of the Oireachtas as legislators and the Judiciary. However, under this legislation, the penalties are severe. The penalty for money laundering on indictment is a term of imprisonment of up to 14 years and-or an unlimited fine. On summary conviction there is a sentence of up to 12 months imprisonment and-or a fine of up to €5,000.

That covers most of the main points raised during the debate. I again thank Senators for their contributions and support of the Bill which is very significant. Other issues that arise will be dealt with on Committee Stage.