Fergus O'Dowd (Louth, Fine Gael)
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Question 32: To ask the Minister for Finance if he had knowledge, discussions or meetings with persons pertaining to the stockbroking division of a bank (details supplied); and if he will make a statement on the matter. [14035/09]

Fergus O'Dowd (Louth, Fine Gael)
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Question 33: To ask the Minister for Finance if he received a copy or correspondence relating to an audit report (details supplied); and if he will make a statement on the matter. [14047/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 32 and 33 together.

The Financial Regulator has informed me that on 19 October 2001 AIB Capital Markets plc in accordance with the obligations imposed in the Central Bank's Handbook for Investment and Stockbroking firms, submitted a copy of an AIB Group Internal Report entitled "Special Investigation Goodbody Stockbrokers - Trading in AIB Shares" and a copy of a management letter addressed to the Internal Audit Committee of the Board of AIB to the Central Bank. The work related to this report had been undertaken from May to September 2001.

The report articulated that the arrangements that Goodbody Stockbrokers (Goodbody) had put in place to allow them to trade in AIB shares had not operated in accordance with those previously communicated to the Central Bank and the Irish Stock Exchange. The original arrangements presented were designed to allow Goodbody, as a stockbroker, to trade in AIB shares in compliance with the provisions of the Companies Act, 1990 which restricted trading by a company in its own shares. The Companies Acts were subsequently amended with effect from 4 August 2001 enabling Goodbody, as stockbroking subsidiary of AIB, to trade AIB shares.

Subsequent to the submission of the report the Central Bank met with senior personnel in AIB, as part of its examination of this matter. I understand that under confidentiality legislation at the time the Central Bank was precluded from passing on information to other parties, including the Minister for Finance. Ultimately significant personnel changes took place in Goodbody.

The Financial Regulator has also informed me that the procedure at the time, in accordance with the provisions of the Criminal Justice Act, 1994, was for suspicions of money laundering identified by the Bank to be reported to the Garda and I can confirm that all reporting obligations were met by the Central Bank.

I have not received a copy of the Report or had discussions with the Financial Regulator regarding the Report.