Bernard Durkan (Kildare North, Fine Gael)
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Question 162: To ask the Minister for Justice, Equality and Law Reform the degree to which efforts are being made to combat money-laundering; and if he will make a statement on the matter. [15910/06]

Michael McDowell (Dublin South East, Progressive Democrats)
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Ireland has extensive legislation in place to combat money-laundering activities.

The main provisions in Irish law relating to money-laundering are set out in section 31 of the Criminal Justice Act 1994, as amended by section 21 of the Criminal Justice (Theft and Fraud Offences) Act 2001), sections 32 and 57 of the Criminal Justice Act 1994 and section 23 of the Criminal Justice (Theft and Fraud Offences) Act 2001.

The legislation defines the offence of money-laundering as follows: (a) converting, transferring or handling property which is or represents the proceeds of crime; (b) concealing or disguising the true nature, source, location, disposition, movement or ownership or any rights of any property which is or represents the proceeds of crime; or (c) acquiring, possessing or using any property which is or represents the proceeds of crime.

In short, in any one of the situations at (a), (b) or (c) above, a person who knowing or believing, or being reckless of the fact, that the property represents the proceeds of criminal conduct is guilty of money-laundering.

The legislation also allows for the designation of certain bodies and persons for anti-money-laundering purposes and for the prescribing of certain activities for the purposes of anti-money-laundering. The effect is twofold. First, when providing certain specified services, designated bodies and persons are obliged to identify customers and retain certain records. Second, designated bodies and persons must report to the Garda Síochána any suspicion that a money-laundering offence has been or is being committed regarding their business.

The legislation further requires designated bodies to adopt measures to prevent and detect the commission of a money-laundering offence, including the establishment of internal procedures, circulation of instructions to, and appropriate training of employees, directors and officers.

Ireland's anti-money-laundering legislation and other measures were evaluated recently by the Financial Action Task Force, FATF, the leading international anti-money-laundering organisation. The report of that evaluation contained several recommendations. The amendments to the criminal law which would be needed to implement the recommendations of the report are being assessed by officials of my Department in consultation with the Office of the Attorney General. That assessment is being conducted in parallel with the examination of legislative requirements to implement the third EU anti-money-laundering directive, which was agreed in late 2005. Any legislative proposals will be submitted to Government for approval in the normal way.

All suspicious transaction reports, STRs, made to the money-laundering investigation unit of the Garda bureau of fraud investigation are investigated in full in an attempt to link the subject or funds to any form of criminal activity. A number of STR investigations are also referred to the Criminal Assets Bureau annually for further investigation.