Dermot Ahern (Louth, Fianna Fail)

With regard to the amendment No. 7, the term "cohabitant" is not a requirement of the EU money laundering directive. The use of the term and its meaning, which I had initially intended to include in the Bill, was discussed at length on Committee Stage in the other House. On further reflection, I decided not to proceed with including this term within the current Bill.

Senators will be aware that the term "cohabitant" is being defined in the Civil Partnership Bill. I would prefer not to interfere with the provisions of the Civil Partnership Bill in this legislation, particularly as there is no specific requirement arising from the money laundering directive to refer to cohabitants. I will give consideration at a later date to an amendment in the Civil Partnership Bill to have the term apply to the relevant section of the money laundering Bill, if it is considered necessary. The Civil Partnership Bill is clearly the more appropriate place to deal with this particular definition.

The proposed amendment No. 8 relates to the concept of the "politically exposed person". The definition of "politically exposed person" as it is currently set out in the Bill is based very closely on the requires set out in the third EU money laundering directive and in the subsequent and associated implementing directive. Politically exposed persons are understood to be persons entrusted with prominent public functions, their immediate family members or those known to be their close associates. When determining those who are covered by this designation it is essential to take into account the social, political and economic differences between countries.

The current draft of this provision is carefully attuned to the requirements of both directives. The implementing directive was agreed a year later than the main third EU money laundering directive. It clarified, in Article 2, in some detail what is meant by a "politically exposed person". It is this detailed clarification of the politically exposed person which is reflected in the current draft of the Bill. The directive obliges us to transpose this requirement. It is not a concept which can be omitted from the legislation if we are to transpose the directive correctly. I would prefer not to make any change to the provision as it stands because it very much along the lines of what was in the implementing directive.

The directive defines natural persons who are or have been entrusted with prominent public functions. They shall include the following: a head of state, head of government, minister or deputy or assistant minister; a member of a parliament; a member of a supreme court, constitutional court or other high level judicial body whose decisions are not subject to further appeal, except in exceptional circumstances; a member of a court of auditors or of the board of a central bank; an ambassador, chargé d'affaires or high ranking officer in the armed forces; members of administrative management or supervisory bodies of State-owned companies and obviously spouse, partners, children, parents etc. I do not think that somebody who is chair of the children's alliance or whatever would be included.