Catherine Noone (Fine Gael) | Oireachtas source

This Bill, originally entitled the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2013, amends the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Some of the amendments were beyond the scope of the original Title and, as such, it has been renamed.

Before dealing with the significant money laundering and terrorist financing sections of the Bill, I will begin by focusing on the changes that have necessitated its new Title. The amendments inserted at Part 3 deal with serious threats to life or property arising from a remote explosive device, similar to the powers already in operation in other parts of the world. Such provisions are in place in Britain and Northern Ireland, for instance, covering any event where a mobile telephone could be used as a detonation trigger which is enabled upon ringing the handset. Such set-ups are frequently found in bombing devices. Part 3 allows for a two-tier process which will render these devices unviable by means of shutting down mobile telephone reception in a given area for a set period of time. It is a sad fact of modern-day security that terrorists are willing to take advantage of such cowardly stratagems which cause terrible loss of life and limb, as seen in countless tragic events in recent years.

The provision in Part 3 is necessary to ensure we have the proper mechanism and tools in place to deal with such eventualities. The system provides for a two-step process with decisions at ministerial and Garda Síochána level. An application must be made by a garda of assistant commissioner rank or higher to the Minister for authorisation to issue directions for the restriction of mobile telephone coverage in a given area. There is a 24-hour limit on the period for which such an authorisation may be acted upon. A central element of Part 3 is the proposed section 24 which provides for a member of the Garda of chief superintendent rank or higher, having received a ministerial authorisation, to direct a mobile telephone service provider to cease providing services in a particular area at a particular time. This will ensure there are adequate checks and fall-back mechanisms in place. Similarly, this direction is limited to a six-hour duration.

I will now deal with the money laundering provisions of the Bill. The Financial Action Task Force, FATF, is an international body set up to counter money laundering on a global basis. While the FATF has had some success in containing the threat internationally, new mechanisms and techniques are constantly emerging. As such, the level of money laundering has remained broadly steady in the western world in the past 15 years. This legislation comes before us in the wake of a report last year by the Central Bank which found that our financial institutions were failing to comply fully with the law in regard to money laundering. The Central Bank carried out an inspection ranging over 18 months which involved auditing 60 financial institutions throughout the country. The revelations were surprising, with a significantly lower level of compliance with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 than had been anticipated.

It is clear, therefore, that a further strengthening of the rules is necessary. Moreover, as a result of our non-compliance in this area, Ireland was put on what is called the follow-up process by the FATF. Addressing deficiencies in the legislation and improving Ireland's FATF rating were identified by the Central Bank as vital elements in improving our ability to compete for international business. The third money laundering directive from the European Union was enacted under the previous money laundering Act. However, a fourth anti-money laundering directive is expected later this year, which may necessitate further legislation in this area in the future.

I am mindful of the cost of compliance with measures to combat money laundering. In this regard, I am satisfied to see that the main proposed amendment to the 2010 Act relates to customer due diligence measures rather than transaction monitoring. The Bill deals adequately with a number of issues in respect of money laundering, terrorist financing and other specific aspects of potential terrorist and criminal activity. I commend it to the House.