Pearse Doherty (Donegal, Sinn Fein)
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117. To ask the Minister for Finance the extent to which the money laundering allegations at a bank (details supplied) have been investigated to ascertain if its branch here was part of suspicious or illegal activities; and if he will make a statement on the matter. [53506/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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In relation to the International Bank referred to in the Deputy's question I have been advised by the Central Bank of Ireland (CBI) that its Irish Branch is supervised for compliance with the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the Act) by the CBI. The CBI’s mandate under the Act is to supervise designated persons compliance with the Act.

However, pursuant to Section 33AK of the Central Bank Act 1942, the CBI is prevented from disclosing any confidential information obtained through the performance of its functions or the exercise of its powers.

Having said that, the Deputy may find the following information useful in relation to the CBI's Anti-Money Laundering and Counter Terrorist Financing supervisory framework:

Directors of banks operating in Ireland are required to ensure that they have governance and control arrangements in place that comply with the European Banking Authority's Governance Guidelines, and inter alia, the CBI's Corporate Governance Code.

The CBI's Fitness and Probity regime also requires credit institutions to assess the suitability of members of the management body and requires high standards of behaviour of those individuals on an ongoing basis.

Banks are expected to have strong controls in their front line businesses, in their risk management and compliance functions and an effective internal audit capability, such that conflicts of interest are managed appropriately and the associated risks are mitigated. These arrangements are assessed through, for example, external audits and are also subject to ongoing supervisory engagement by the CBI, including through regular inspections.

The CBI has the authority to compel the production and/or provision of any information pertinent to monitoring AML/CFT requirements pursuant to sections 66-68 and 77 of Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 and Section 27 of Central Bank (Supervision and Enforcement) Act 2013. This includes the ability to request explanations or answers to queries regarding documents provided.

The CBI is authorised to impose administrative sanctions following the Administrative Sanctions Procedure derived from Part IIIC from the Central Bank Act of 1942. Administrative sanctions range from a caution or reprimand, monetary penalties, suspension or removal of authorisations of financial services providers, among others.