Bernard Durkan (Kildare North, Fine Gael)
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Question 218: To ask the Minister for Finance if he is satisfied regarding the adequacy of legislation affecting financial transactions with particular reference to increased incidents of money laundering; and if he will make a statement on the matter. [27089/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 221: To ask the Minister for Finance if he is satisfied that international banking and financial services have adequate protection to prevent money laundering; and if he will make a statement on the matter. [27092/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 218 and 221 together.

Irish legislation on money laundering is set out in the Criminal Justice Act 1994, as amended. Primary responsibility for legislation in the area of money laundering rests with the Minister for Justice, Equality and Law Reform. Enforcement of the legislation is primarily a matter for the Garda Síochána. In regard to regulation of the financial sector the role of the Minister for Finance is to bring forward legislative proposals under which the financial regulator can adequately supervise and regulate financial service firms including their compliance with their obligations under the anti-money laundering provisions of the Criminal Justice Act 1994. The financial regulator is independent in the exercise of its powers.

The financial regulator requires all institutions which it supervises, including international banking and financial services firms located in Ireland, to comply with the anti-money laundering legislation and relevant sectoral guidance notes and to have in place, the necessary procedures and controls to ensure such compliance. The adequacy of such systems is reviewed by the financial regulator in the course of its ongoing supervision of institutions and requirements for improvement advised to institutions as necessary. Furthermore, in accordance with its legal obligation under section 57(2) of the Criminal Justice Act 1994, the financial regulator is obliged to make reports to the Garda Síochána and the Revenue Commissioners where in the course of its supervision it suspects that an institution has breached the relevant money laundering provisions of the Criminal Justice Act 1994.

The Deputy will also be aware that a third money laundering directive has recently been adopted within the EU. This will increase existing anti-money laundering requirements, particularly by obliging affected bodies to identify the beneficial ownership of clients. This new directive will require amendments to our money laundering legislation.