Banks would be compelled to combat financial abuse under law reform plan
Proposal includes establishment of safeguarding body
Banks and other financial institutions would be compelled to take steps to guard against the financial abuse of “at-risk” customers under sweeping proposals from the country’s independent law reform body.
This would include stopping transactions where it is suspected a customer is being preyed upon by another individual for financial gain.
Bank staff would be immune from legal repercussions where they act in good faith to prevent financial abuse, under recommendations being made to the Government.
The proposals are contained in a sprawling 1,000-page report published today by the Law Reform Commission about steps it says should be taken to improve adult safeguarding in Ireland.
The commission has also recommended the setting up of a national adult safeguarding body, the introduction of “no contact” orders to protect at-risk adults from specific individuals, and the creation of a range of new criminal offences to tackle abuse and exploitation.
It said financial abuse was one of the most prevalent forms of abuse against at-risk adults, who it defined as being adults who, by reason of a physical or mental condition or other personal characteristic, or their family or life circumstances, need support to protect themselves from harm at a particular time.
In the report, it said there were a number of ways in which the law could be strengthened to address the issue of financial abuse.
It is seeking the amendment of legislation and draft regulations proposed by the Central Bank last month, to impose obligations on regulated financial service providers to prevent and address financial abuse of at-risk customers.
The commission, which is headed by former chief justice Frank Clarke, recommended that such institutions be provided with a statutory power to temporarily suspend the completion of a financial transaction if they suspect financial abuse.
It also recommended that adult safeguarding training for staff of financial institutions, credit unions and post offices should be a legal requirement.
The commission said its report drew from extensive research and analysis of existing domestic law and policy and a comprehensive review of adult safeguarding legislative frameworks in other jurisdictions.
It has drafted two bills it wants to see passed by the Oireachtas.
One of its key conclusions is that statutory bodies currently have limited ability to intervene when an at-risk adult is at risk of abuse or neglect.
The commission said this situation had been highlighted in a number of cases in the past 20 years.
It recommended the law be changed to impose safeguarding duties on the providers of certain services, including risk assessments and the preparation of adult safeguarding statements, to prevent harm to at-risk adults.
This would apply across various sectors, including nursing homes, residential and day services for adults with disabilities, accommodation for people in the international protection process, homelessness services and substance misuse centres.
There would also be a duty on people working in certain occupations and professions to report harm.
Another key recommendation is the setting up of a social work-led national safeguarding body, not as a regulator but with a statutory function to promote the health, safety and welfare of at-risk adults.
The commission envisages that this body would have statutory powers to receive reports of harm of at-risk adults and to respond appropriately.
This would include the power to enter relevant facilities and, in serious cases, the power to obtain a court warrant to enter a premises or a person’s home to assess their health, safety and welfare.
The commission said that in particularly serious cases, the body should have a power “as a last resort” to seek a court order to remove an atrisk adult from where they are and take them to a specified safe place.
Four new criminal offences were proposed in the report.
These were the creation of an offence of intentional or reckless abuse, neglect or ill treatment of a relevant person; an offence of exposure of a relevant person to a risk of serious harm or sexual abuse; an offence of coercive control of a relevant person; and an offence of coercive exploitation of a relevant person.
The coercive exploitation offence would criminalise a range of exploitative behaviours such as “cuckooing”, where a person befriends an at-risk adult and takes over their home to conduct illegal activities or engage in anti-social behaviour.
Also recommended are amendments to domestic violence legislation to allow for barring and safety orders to be made against people who co-habit with an at-risk adult, including where that person is contracted to care for the atrisk adult.
The creations of further orders for cases not involving domestic abuse was also recommended.