Shay Brennan (Dublin Rathdown, Fianna Fail)
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435. To ask the Minister for Finance if new regulatory measures or amendments to existing legislation are being considered to enhance transparency and oversight of section 110 special-purpose vehicle firms, particularly those with Russian connections. [12294/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to answer questions 12294 and 12297 together.

Section 110 of the Taxes Consolidation Act creates a tax-neutral regime for bona fide securitisation and structured finance purposes. Ireland is not unique in having a specific regime for securitisation.

Under Central Bank regulations, certain Section 110 companies may be required to publish a prospectus under the “Prospectus Regulation” (Regulation (EU) 2017/1129). This applies to persons:

Accordingly, this harmonises the requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trade on a regulated market. As such, its objective is to ensure investor protection and market efficiency. As part of this process, the Central Bank of Ireland must approve the prospectus prior to the public listing or offer.

Separately, Special Purpose Entities (SPEs) that carry out activities listed under Schedule 2 of the Criminal Justice (Money Laundering and Terrorist Financing ) Act 2010 are subject to supervision by the Central Bank for Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) purposes. Firms obliged to register include those which participate in securities issues and the provision of related services. An SPE is required to report to the Central Bank if it predominantly engages in securitisations and if it avails of the tax provisions of Section 110.

On 22 October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient and Developing Markets’ was published. It was a wide-ranging review of the funds and asset management sector. The terms of reference included examining the use and scope of the Section 110 regime, both in the context of the property sector and more generally so as to ensure that the regime is fit for purpose and meeting agreed policy objectives. As part of this aspect of the review, proposals made in relation Special Purpose Entities more broadly, were considered. The report made six recommendations on the topic of structured finance, including recommendations in relation to anti-money laundering, transparency and governance.

A detailed examination of the Section 110 regime and associated recommendations can be found in Chapter 8 of the Funds Review 2030 Report, link below:

www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/

The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations and I, working with my officials, will consider next steps in this regard over the coming months.

I would note that work is underway by the Departments of Finance and Justice on transposing new EU AML/CFT legislation into Irish law. This includes elements relating to beneficial ownership, which are aimed at enhancing transparency regarding those who ultimately own or control companies and other legal vehicles. It also includes a requirement that self-regulatory bodies supervising auditors, qualified external accountants, notaries and solicitors be made subject to oversight by a public authority to adequate and effective supervision. These entities play an important role in the establishment and operation of SPEs.

Ireland’s framework for combating money laundering and terrorist financing was evaluated by the Financial Action Task Force (FATF) in 2017 - an intergovernmental body which sets what are accepted as the global standards in this area - and, in the area of international cooperation specifically, Ireland was rated as having a substantial level of effectiveness.

I understand that international cooperation efforts to combat these activities take place on an ongoing basis. In addition, with the setting up of the EU’s Anti-Money Laundering Authority, (AMLA), I expect to see even greater cooperation between supervisors and between financial intelligence units, which in Ireland is located within An Garda Síochána, to combat money laundering and illicit financial flows from all sources.

Shay Brennan (Dublin Rathdown, Fianna Fail)
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438. To ask the Minister for Finance if there are plans for international co-operation to address potential money laundering or illicit financial flows through section 110 special-purpose vehicle firms with Russian connections. [12297/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 110 of the Taxes Consolidation Act creates a tax-neutral regime for bona fide securitisation and structured finance purposes. Ireland is not unique in having a specific regime for securitisation.

Under Central Bank regulations, certain Section 110 companies may be required to publish a prospectus under the “Prospectus Regulation” (Regulation (EU) 2017/1129). This applies to persons:

Accordingly, this harmonises the requirements for the drawing up, approval and distribution of the prospectus to be published when securities are offered to the public or admitted to trade on a regulated market. As such, its objective is to ensure investor protection and market efficiency. As part of this process, the Central Bank of Ireland must approve the prospectus prior to the public listing or offer.

Separately, Special Purpose Entities (SPEs) that carry out activities listed under Schedule 2 of the Criminal Justice (Money Laundering and Terrorist Financing ) Act 2010 are subject to supervision by the Central Bank for Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) purposes. Firms obliged to register include those which participate in securities issues and the provision of related services. An SPE is required to report to the Central Bank if it predominantly engages in securitisations and if it avails of the tax provisions of Section 110.

On 22 October 2024 ‘Funds Sector 2030: A Framework for Open, Resilient and Developing Markets’ was published. It was a wide-ranging review of the funds and asset management sector. The terms of reference included examining the use and scope of the Section 110 regime, both in the context of the property sector and more generally so as to ensure that the regime is fit for purpose and meeting agreed policy objectives. As part of this aspect of the review, proposals made in relation Special Purpose Entities more broadly, were considered. The report made six recommendations on the topic of structured finance, including recommendations in relation to anti-money laundering, transparency and governance.

A detailed examination of the Section 110 regime and associated recommendations can be found in Chapter 8 of the Funds Review 2030 Report, link below:

www.gov.ie/en/publication/da341-funds-sector-2030-a-framework-for-open-resilient-and-developing-markets/

The 2025 Programme for Government has committed to progress and publish an implementation plan taking into consideration the Funds Review recommendations and I, working with my officials, will consider next steps in this regard over the coming months.

I would note that work is underway by the Departments of Finance and Justice on transposing new EU AML/CFT legislation into Irish law. This includes elements relating to beneficial ownership, which are aimed at enhancing transparency regarding those who ultimately own or control companies and other legal vehicles. It also includes a requirement that self-regulatory bodies supervising auditors, qualified external accountants, notaries and solicitors be made subject to oversight by a public authority to adequate and effective supervision. These entities play an important role in the establishment and operation of SPEs. Ireland’s framework for combating money laundering and terrorist financing was evaluated by the Financial Action Task Force (FATF) in 2017 - an intergovernmental body which sets what are accepted as the global standards in this area - and, in the area of international cooperation specifically, Ireland was rated as having a substantial level of effectiveness.

I understand that international cooperation efforts to combat these activities take place on an ongoing basis. In addition, with the setting up of the EU’s Anti-Money Laundering Authority, (AMLA), I expect to see even greater cooperation between supervisors and between financial intelligence units, which in Ireland is located within An Garda Síochána, to combat money laundering and illicit financial flows from all sources.