Bernard Durkan (Kildare North, Fine Gael)
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Question 159: To ask the Minister for Finance if banking charges here are in line with, ahead of or lower than other European Countries or within the Eurozone; and if he will make a statement on the matter. [25311/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Regulation of non-interest bank charges, although a feature of the Irish legislative framework, does not apply in all EU Member States. The information requested by the Deputy is, therefore, not available to my Department. However, the Deputy may wish to note that a recent industry study based on seven members of the eurozone, including Germany, France, Italy and Spain, concluded that charges in Ireland compare favourably with other members of the euro area.

In line with its statutory consumer mandate, the Financial Regulator has produced a number of surveys that compare bank charges for specific products, to help Irish consumers compare charges between credit institutions operating in the State.

Finally, increased competition in the Irish banking sector, reflecting such factors as new entrants and the introduction of a switching code for both personal customers and now the business sector, will benefit consumers through increased choice, innovative products, lower prices and better service.

Bernard Durkan (Kildare North, Fine Gael)
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Question 160: To ask the Minister for Finance if he will indicate to what extent ongoing provision is made in the banking and financial service sectors to detect fraud, money laundering or other illegal financial transactions with a view to preserving the integrity of the banking system and preventing international transactions of the proceeds of crime; and if he will make a statement on the matter. [25312/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The procedures for the prevention of money laundering in the financial system primarily involve the requirement on financial institutions (and other designated bodies) to identify their customers, to have adequate anti-money laundering procedures in place, including staff training, to keep records and to report suspicions of money laundering and terrorist financing offences to the Garda Síochána and to the Revenue Commissioners. These procedures arise under the 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 are 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 Garda Síochána and the Revenue Commissioners regularly receive reports from financial institutions and other designated bodies where they suspect that a money laundering offence is being or has been committed. All such reports are investigated and progressed as appropriate by the relevant authorities.

The Financial Action Task Force on Money Laundering (FATF), the international standard setting body in this area recently published a report on Ireland's systems to combat money laundering and terrorist funding. Ireland is one of ten countries evaluated to date in the FATF Third Round of Mutual Evaluations. Its overall ratings are comparable to those obtained by the other countries evaluated.

The revised FATF Money Laundering recommendations of 2003 — the standard against which Ireland's compliance was assessed — have been embodied in the 3rd EU Money Laundering Directive which came into force in December 2005 with a transposition deadline of December 2007.

Ireland opted to be evaluated early in the 3rd Round of Mutual Evaluations because this would be of considerable assistance in planning the transposition of the 3rd EU Money Laundering Directive into Irish Law. Many of the FATF recommendations on which Ireland is currently assessed as either partially compliant or non-compliant will be addressed in the transposition into Irish Law of the 3rd EU Money Laundering Directive. These include additional measures in relation to customer due diligence, measures relating to the identification of foreign politically exposed persons, the strengthening of the sanctions for breaches of money laundering rules and the regulation of non-financial entities.

On publication of the FATF report in March this year my colleague the Minister for Justice Equality and Law Reform and I jointly undertook to examine the Report's recommendations thoroughly and gave a commitment to further strengthen Ireland's anti-money laundering mechanisms. The process of reviewing and updating the Irish legal framework to meet both our domestic needs and international obligations is already under way and wide ranging consultation with the banking, financial services and other relevant sectors has already taken place as part of this process.