Seanad debates

Thursday, 11 March 2010

Criminal Justice (Money Laundering and Terrorist Financing) Bill 2009: Committee Stage.

 

12:00 pm

Photo of Dermot AhernDermot Ahern (Louth, Fianna Fail)

Following further consideration of these provisions, I have decided to make a number of amendments to the record-keeping provisions, the purpose which is to clarify and amend. Article 30 of the third money laundering directive states records must be kept for at least five years. However, this does not preclude a member state from applying a longer period. The Bill provides for a period of not less than six years and the amendment will change this to five years. Some domestic legislation on record-keeping provides for a period of five years and some for six. I have decided, following further consideration of the matter, that it would be more appropriate to apply a five-year threshold which is being applied in most member states.

The amendments also deal with the time period for which records relating to transactions and services will be kept. It is five years from the date on which the transaction or service is completed or discontinued, whether a business relationship applies. In this respect it is important to note a business relationship is a business, professional or commercial relationship between a person and a customer that the person expects to be ongoing. This is defined in section 24.

There can be relevant transaction and service records for a customer that do not fit these criteria. An example is an occasional transaction, a matter already discussed in amendments Nos. 3 and 5. Subsection (4), paragraphs () and (), provides that records relating to transactions must be kept for five years from the date on which the transaction or series of transactions is completed or discontinued. This means that, whether the transaction takes place in the context of a business relationship or is a once-off or occasional transaction, the period is the same; it is five years from the date on which the transaction or series of transactions is completed or discontinued.

The same principle applies to subsection (4)() with regard to a service. The reason for providing for these separately was touched on in the discussion on amendment No. 6, as there is a difference in the terms. The proposed text of subsections (5) and (6) arises from the fact that section 32 of the Criminal Justice Act 1994 is being repealed in this Bill. As Senators will appreciate, the current money laundering record-keeping requirements are contained in subsection (9) and these provisions will ensure record-keeping requirements will still apply.

Amendment No. 14 changes the subsection references in what is currently known as subsection (5) to reflect the other amendments and the additional subsections involved.

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