David Stanton (Cork East, Fine Gael)
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Question 137: To ask the Minister for Finance the measures he intends to take to improve access to bank accounts for people on low incomes; and if he will make a statement on the matter. [4654/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Lack of financial knowledge, particularly on initiating the transaction, and the need to provide suitable identification documents in order to open an account are frequently identified as the main obstacles faced by those on lower incomes when attempting to access financial services. Financial institutions are obliged under the Criminal Justice Act, 1994 to take reasonable measures to identify their customers, with a view to combating money laundering and terrorist financing. Guidelines approved by the money laundering steering committee under the aegis of my Department set out measures that might reasonably be adopted by financial institutions in this regard. These guidelines emphasise that any measures adopted should not deny a person access to financial services solely on the grounds that they do not possess certain specified identification documentation. For its part, the Financial Regulator has incorporated this as a requirement in its draft consumer protection code.

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

As far as improving financial knowledge is concerned, the Financial Regulator, within its statutory consumer mandate, has developed a number of specific initiatives to help consumers make informed choices in terms of the financial products they choose, the amount of risk they take on and the cost of the financial products. These initiatives have been developed through the framework of the Financial Regulator's consumer awareness campaign and include publication of a fact sheet entitled, How to Open a Bank or Building Society Account.