Bernard Durkan (Kildare North, Fine Gael)
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Question 236: To ask the Minister for Finance if adequate protection is in place to prevent money laundering through the banking or financial services system; and if he will make a statement on the matter. [33536/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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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 compliance with their obligations under the anti-money laundering provisions of the Criminal Justice Act 1994.

The financial regulator requires all institutions which it supervises 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. The financial regulator is independent of me in the exercise of its powers.

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 directive and other international anti-money laundering instruments are being examined to assess what legislative requirements arise to give effect to them in Ireland.