Written answers

Wednesday, 15 January 2014

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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101. To ask the Minister for Finance the requirements imposed on banks seeking proof of identity for customers under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010; if the banks are required or permitted to hold the customer proof of identity on file; and if he will make a statement on the matter. [1567/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The customer due diligence requirements are set out in the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2013). Section 33 of the 2010 Act requires designated persons (such as banks) to apply customer due diligence measures prior to establishing a business relationship with a customer e.g. opening a bank account. The customer due diligence measures require that the designated person must identify and verify the customer’s identity on the basis of documents or information that the designated person has reasonable grounds to believe can be relied upon to confirm the identity of the customer.

Section 55 of the 2010 Act (as amended by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2013) requires designated persons (banks) to keep a copy the proof of the customer‘s identity obtained during the application of customer due diligence measures. The documents or other records shall be retained for a period of not less than 5 years after the relationship with the customer has ended.

My Department has published Guidelines on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing on the application of the 2010 Act. These guidelines specify a non-exhaustive range of documentation which the bank may choose to accept for the purposes of verifying identity including in paper or electronic format. The Guidelines are available on my Department's website.

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