David Stanton (Cork East, Fine Gael)
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This amendment relates to the requirement for a designated person to monitor customers with whom he or she has a business relationship. The words to be inserted make it clear that the monitoring is to be done only to the extent that it is warranted by the risk in a particular case of money laundering or terrorist financing. This is in line with the directive which mandates a risk-based approach to consumer due diligence.

David Stanton (Cork East, Fine Gael)
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This measure relates to customer due diligence measures for politically-exposed persons. In general these measures must be carried out before a customer opens an account. However, a bank can allow an account to be opened without first carrying out the measures as long as no transactions are carried out. This amendment extends that exception to all financial institutions in line with the directive.

Diarmuid Wilson (Fianna Fail)
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Amendments Nos. 3 and 4 are related and may be discussed together by agreement.

David Stanton (Cork East, Fine Gael)
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These are technical amendments. They relate to the conditions under which a designated person can rely on a third party to carry out anti-money-laundering measures on his or her behalf. Under the current requirement the person must be satisfied that the third party will provide him or her with relevant documents or information. These amendments clarify that it is not necessary if certain circumstances apply including that the person and the third party are part of the same group. This is in line with Article 28 of the directive.

Diarmuid Wilson (Fianna Fail)
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Amendments Nos. 5 and 12 are related and may be discussed together by agreement.

David Stanton (Cork East, Fine Gael)
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The purpose of these amendments is to remove a requirement to report to An Garda Síochána and the Revenue Commissioners all transactions relating to what is known as a high-risk third country. Such a country is not considered to have adequate controls for money laundering purposes. This requirement is considered to be unnecessarily broad when complying with the new European Commission designation of states as high-risk. It would also be unduly burdensome for An Garda Síochána and the divisions involved.

There is already a general requirement to report any transaction that is suspicious. Almost 25,000 reports were received by An Garda Síochána under this requirement last year. The Bill also contains an obligation to employ enhanced due diligence in respect of customers from high-risk third countries.

Niall Ó Donnghaile (Sinn Fein)
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Perhaps the Minister of State could provide some further clarity on amendment No. 5. The amendment involves the deletion of section 23 and involves the deletion of references to section 43 of the parent Act. The section removes the defence, under section 43 of the parent Act, relating to the use of internal reporting procedure established by an employer for the purpose of facilitating the operation of the section in question. If I understand it correctly, the amendment would remove as a defence for a breach the requirement for designated persons to report transactions connected with places that have inadequate procedures in place for detection of money laundering or terrorist financing. I presume this is the reason for the existing section 23, which would have substituted section 43 of the parent Act, and it is no longer required as the section will remain as it is. It seems a defence will no longer be available for using internal reporting procedures. Can the Minister of State clarify the matter for me? It is not entirely clear to me.

David Stanton (Cork East, Fine Gael)
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I am not fully sure what Senator Ó Donnghaile is getting at. There is a general requirement to report any transaction that is suspicious in any event. Almost 25,000 reports were received by An Garda Síochána last year under this requirement. The Bill has an obligation to apply enhanced due diligence in respect of consumers from high-risk countries. Adequate safeguards are already in place. The current measures are considered unduly burdensome for An Garda Síochána and the businesses involved. Basically, it is unworkable at the end of the day. We believe there is enough in the legislation as it is to keep the safeguards in place.

Niall Ó Donnghaile (Sinn Fein)
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That is fair enough.

David Stanton (Cork East, Fine Gael)
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This amendment relates to the power of An Garda Síochána to direct that documents and records are kept beyond the normal five-year retention period. It inserts the safeguard that the direction must be given in writing.

Diarmuid Wilson (Fianna Fail)
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Amendments Nos. 7, 8 and 11 are related and may be discussed together by agreement.

Niall Ó Donnghaile (Sinn Fein)
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I might come in on amendment No. 11.

David Stanton (Cork East, Fine Gael)
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This amendment is to transpose part of Article 37, namely, the second paragraph of the fourth money laundering directive. The provision requires that managers and beneficial owners and providers of gambling services are fit and proper persons. The amendment inserts five new sections. It requires that anyone who is a person directing a private members' gambling club or a beneficial owner of such a club to hold a certificate of fitness. It will be an offence for such a person not to hold a certificate of fitness. The rest of the provisions set out the procedure for applying for a certificate. The application is made to An Garda Síochána. If a person does not reside in the State, then it is made to the Minister. A certificate can be refused if a person has been convicted of certain offences. The certificate lasts for three years. There is provision for an appeal to the District Court regarding the refusal to grant a certificate.

Amendments Nos. 7 and 8 are consequential and relate to the numbering of a different section. The committee will be aware of the wider work on gambling that the Government is undertaking. We have approved the establishment of an independent gambling regulator. I have chaired a working group of reform in this area which has recently completed this work. While broader proposals are being developed, these provisions will allow us to ensure that persons involved in this sector are fit and proper persons and that our EU obligations are met.

Niall Ó Donnghaile (Sinn Fein)
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I welcome amendment No. 11. We will be supporting it. We have raised the issue on various Stages of the Bill. I discussed the matter with the Minister for Justice and Equality, Deputy Flanagan, in the House some weeks ago. The wider issues of the regulation of the betting and gambling industries and gambling control are for another day. However, Sinn Féin contends that the Department has not made sufficient progress on this issue. Having said that, I welcome the amendment because at least it is a step in the right direction. I hope we can build on it and see further regulation in terms of what is required to counter the use of gambling and private members' clubs and gambling activities to launder money. Why does the measure not include bookmakers? I would have thought that is a glaring and obvious avenue where the same practice could occur.

I welcome the amendment.However, I add a health warning that we probably could have done more and done better as regards this and we should certainly look to do that in the future.

Diarmuid Wilson (Fianna Fail)
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Does the Minister wish to respond?

David Stanton (Cork East, Fine Gael)
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I am informed that bookmakers are already subject to fitness and probity under the Betting Acts.

On the other issue of gambling, I agree and am disappointed that we have not been able to make more progress on it. Before the end of this session I hope to have the miscellaneous provisions (lotteries and raffles) Bill produced. It is extraordinarily complicated and this area is changing by the day. We had a debate her last week on loot boxes, which is a whole significant area again. I am aware that some other countries in Europe are seriously also looking at this. We are making progress on it. Our working group had five long, detailed meetings with intergovernmental Departments involved. There is a report being worked on now for Government to move this matter forward. I am determined to get it right and quite anxious that we move on as quickly as possible on this.

I thank the Senator for his support on this amendment.

Niall Ó Donnghaile (Sinn Fein)
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That is welcome to hear and I do not doubt the Minister's bona fides on this issue. I wanted to take the opportunity where it looks that we are going to go through this Bill quite rapidly today. This was a marker that was put down, because it is an important issue.

Diarmuid Wilson (Fianna Fail)
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Amendment No. 9 is a Government amendment. Amendments Nos. 9 and 10 are related and may be discussed together, by agreement. Is that agreed? Agreed.

David Stanton (Cork East, Fine Gael)
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The purpose of these amendments is to correct a cross-reference.

David Stanton (Cork East, Fine Gael)
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I thank the Members of the House for facilitating this early move to Report and Final Stages in this very important legislation with a view to concluding scrutiny of the Bill in this sitting of the Seanad. The support and engagement on this Bill from the Senators has been vital in bringing it so close to completion. I thank the Members.

Diarmuid Wilson (Fianna Fail)
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When is it proposed to sit again?

Martin Conway (Fine Gael)
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Next Tuesday at 2.30 p.m.