Paul McGrath (Westmeath, Fine Gael)
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Question 192: To ask the Minister for Finance if his attention has been drawn to the fact that financial institutions are refusing to open new bank accounts for persons who are unable to produce a current utility bill; his views on the difficulty this can cause, particularly to returning emigrants who may be temporarily resident with their parents; if regulations made by his Department are the cause of these difficulties; and if he will make a statement on the matter. [39900/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Section 32 of the Criminal Justice Act 1994 requires financial institutions to take reasonable measures to identify their customers. Recommended procedures for the implementation of this provision are set out in guidance notes issued under the aegis of the money laundering steering committee, which is chaired by the Department of Finance and includes representatives of financial services industry bodies and the regulatory authorities and State agencies, including the Garda Síochána. The full text of the money laundering guidance notes for credit institutions is available on the Department of Finance website: http://www.finance.gov.ie/Publications/otherpubs/monlaun.htm.

Identification of a customer comprises two elements. These are name verification, typically evidenced by photograph bearing document such as passport, driving licence or other reputable source document, and address verification. Paragraph 45 of the guidance notes provides for those persons who cannot reasonably be expected to produce certain forms of identification, such as a passport or driving licence and-or whose name and Irish address does not appear on a utility bill, electoral register or directory.

The alternative methods of address verification set out in the guidance notes include: a letter-statement from a licensed employment agency that the person has recently arrived in Ireland and is commencing employment or from an employer that the person has commenced employment and in each case stating that the person is not in a position to produce a utility bill or other document which shows an Irish address. In addition, in such cases the prospective customer should be required to submit follow-up documentation, for example, utility bill, confirming Irish address in due course; a letter-statement from a person in a position of responsibility, for example, a solicitor, accountant, doctor, minister of religion, teacher, social worker or community employment scheme supervisor, who is in a position to confirm the person's address to the credit institution. In such instances the person providing the letter-statement must present themselves to the relevant credit institution providing proof of their own identity and verifying their status to the credit institution; or documentation-cards issued by a Government Department showing the address of the person.

Normally difficulties arising at account opening are resolved by an approach from the prospective customer to the branch management or to the bank's customer service department. I stress that it is a matter for each institution to ensure its procedures satisfy the legal requirement under the Criminal Justice Act 1994 that financial institutions take reasonable measures to identify their customers.