Crackdown on cash laundering

THE Government is preparing to draft tough new legislation which will put more responsibility on banks and other financial institutions to identify customers laundering money for terrorist activities.

The new laws will also require accountants, lawyers, tax advisors and private gambling clubs to carry out risk assessments on their client base.

Banks and business owners are then legally obliged to contact the Garda and the Revenue Commissioner’s office if they identify customers who are laundering money.

The legislation is aimed at clamping down on international crime gangs and jihadi terrorists using Irish institutions and businesses to funnel money for criminal activity.

There will be a discussion about the new laws at the final Cabinet meeting before the Christmas recess. Proposals for the new legislation are being brought to Cabinet by Tanaiste and Justice Minister Frances Fitzgerald.

The new laws are required following the passing of an EU directive on money laundering. However, there are concerns over the vagueness of the EU legislation and how it will translate into Irish law.

Among the measures contained in the directive from Brussels is the need for the Government to establish an anti-money laundering steering committee.

However, the key element of the legislation is to oblige firms which could be targeted by money-launderers to carry out business-wide risk assessments of all their customers.

Separately, the Department of Justice has hit back at suggestions by PSNI Chief Constable George Hamilton that Ireland has weak borders which allow criminals into Northern Ireland.

Hamilton said Irish authorities do not have the same “resource or focus” as those operating in the North and highlighted that 775 people had been detained at Northern Ireland ports in the past year. However, new figures from the Department of Justice show Ireland handed over the names of more than 300 potential criminals to UK immigration authorities in less than two years.

“Of those referred, approximately half were arrested by the UK on entry. Therefore, many of those referred to by the Chief Constable were as a result of referrals from Ireland and demonstrate the close co-operation between the Irish and UK authorities in operation,” a source said.

The source said UK and Irish immigration authorities regularly share information.