Bernard Durkan (Kildare North, Fine Gael)
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Question 125: To ask the Minister for Finance the discussions he has had with his EU colleagues with a view to improving banking or financial transaction systems in order to prevent money laundering; and if he will make a statement on the matter. [26761/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 219: To ask the Minister for Finance if he has had any discussions with his EU colleagues with a view to the introduction of legislation for the prevention of money laundering through various financial transactions; and if he will make a statement on the matter. [27090/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 220: To ask the Minister for Finance if he has had any discussions with his EU colleagues with a view to updating regulations for the prevention of money laundering through financial services; and if he will make a statement on the matter. [27091/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 125, 219 and 220 together.

There is strong co-ordination of measures to deter money laundering in the financial system at EU level. A third money laundering directive has recently been adopted by the Council and the Parliament and is due to come into affect shortly. The directive will require to be transposed into domestic legislation in each member state within 24 months of its coming into effect.

The third money laundering directive will replace and update the 1991 and 2001 money laundering directives which imposed obligations on financial institutions and, more recently, on lawyers, accountants and auctioneers to identify their clients and report suspicious transactions to the police authorities. The new directive reflects the 2003 revision of the recommendations of the Financial Action Task Force on Money Laundering, the main international anti-money laundering organisation. One of its central features is to strengthen the obligation on financial institutions, and others, to identify the beneficial ownership of legal entities. It will also impose an obligation on financial institutions and others to pay particular attention to "politically exposed persons", as defined in the third money laundering directive, from other member states and from third countries. The directive also brings terrorist funding into the money laundering framework and introduces the concept of a risk-based approach to the implementation of its requirements. The directive will require amendment of our domestic legislation in relation to money laundering.

Ireland also participates in work to ensure that the EU legal frameworks are adapted to the FATF's special recommendations on terrorist financing. For example, a proposal to tighten controls of money transfers in order to cut off funding sources for terrorists and other criminals has been presented by the European Commission in line with FATF recommendations. The proposed regulation would require that money transfers be accompanied by the identity of the sender. The proposed measures will ensure that this information will be immediately available to the appropriate law enforcement authorities.

The issues of money laundering and criminality generally are also regularly discussed at the Justice and Home Affairs, JHA, Council of the EU.