Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I will respond briefly to the Senator because the issue of banks not always dealing appropriately with individuals who are burdened with debt or are seeking to borrow funds in circumstances where there is either reasonable security for the funds or reasonable capacity to pay has absolutely nothing to do with this legislation. All we are doing between the original section 29 of the 2010 Act and section 10 of this Bill is turning what was an optional discretionary exercise into an obligatory exercise. Under the previous section, the legislation provided for the option of applying enhanced customer due diligence in certain circumstances. As it was optional, if it was not applied, one would not necessarily be open to criticism, even though one was supposed to approach the matter in a particular way. This amendment provides an obligation where there are reasonable grounds to believe there is a heightened risk of money laundering or terrorist financing. This means that if one does not exercise that obligation and it transpires that moneys were used for terrorist financing or money laundering took place and any reasonable assessment of the circumstances would have given rise to such a suspicion, a criminal offence will have been committed. The amendment tightens up our criminal law provisions, as recommended internationally, to ensure people engaged in serious illegality can be identified and the State cannot be used for the transmission of funds that are being laundered or may be used for terrorist purposes.