Move to seize oligarchs’ Irish assets
Red tape stif les bid to fast track new law giving State powers to seize assets
PLANS to fast track a new law that would give the Government CAB-style powers to seize the assets of Russian oligarchs here have been scuppered by parliamentary red-tape, the Irish Mail on Sunday can reveal.
Former Labour leader Brendan Howlin sought to introduce new legislation, called the Magnitsky Bill, in the Dáil this week.
Government sources this weekend indicated Taoiseach Micheál Martin and senior ministers are in favour of bringing in the new laws, which would allow the State to seize the assets of non-resident human rights violators.
The legislation – named after Russian lawyer Sergei Magnitsky who died in a Moscow prison after investigating a $230million fraud involving tax officials – would give the Government the power to lift the lid on money shelters that allow oligarchs to funnel billions through shell companies operating
‘We need to urgently enact legislation’
through the Irish Financial Services Centre (ISFC). In a bid to expedite Mr Howlin’s Bill, the Labour party whip Duncan Smith wrote to Fianna Fáil TD and chair of the Justice Committee James Lawless seeking to have the proposed new legislation examined this week.
In response, Deputy Lawless said: ‘If necessary, the Committee would hold an emergency meeting on Monday or Tuesday.’
However, the plan to fast-track the new law fell foul of parliamentary procedures, in particular over the need to secure ‘a money message’ which allows the State to authorise expenditure on a Bill.
A Government source told the MoS: ‘It can take weeks, even months, to secure a money message, there was no way that would be ready by next week.’
However, other sources said there is too much ‘red tape and bureaucracy’ surrounding Bills, especially considering the need to move quickly in light of the escalating war in Ukraine.
One source said: ‘The pace of anything, whether Ukraine is burning or not, is pretty glacial. There was also nervousness at the top that passing a Bill so quickly would set a dangerous precedent.’
Speaking to the MoS, Mr Howlin said that the delay was ‘most annoying’, adding: ‘This was the opportunity for the Dáil to take a clear and practical measure to respond to the unprecedented aggression by Putin.’
‘This is an unprecedented time – we need to urgently enact legislation to do what we can within our power to seize the assets of Russian oligarchs or those engaging in human rights abuses. It is unthinkable we wouldn’t act when France and Germany are already acting to seize yachts.’
The Wexford TD said his Bill is ‘a very straightforward law that extends existing CAB legislation, enacted after the murder of [journalist] Veronica Guerin, to deal with drug money and assets’.
Mr Howlin told the MoS: ‘This would expand the definition of those who are affected by it to cover human rights abusers.’
Currently, seizures of assets can only legally occur in the country where a crime is committed.
However, Mr Howlin pointed out that Russian laws ‘won’t make what they’re doing a crime’. And he added: ‘This Bill would ensure once it’s a crime in Irish law, we can then seize it, and if they wanted to challenge it they’d have to explain in an Irish court where they got the money or assets.’ Coalition sources indicated there is growing unease over a perceived ‘temerity’ in the Government’s response to the Ukrainian crisis.
One minister told the MoS: ‘For many of us, increasingly it looks as though the policy is to hurt the Russians, but only in a manner that we don’t hurt ourselves too.’ The Green Chairperson of the Budgetary Oversight Committee, Neasa Hourigan, said the Government’s policy should be influenced by the
sight of ‘countries like Switzerland now taking action on this issue’.
Ms Hourigan told the MoS: ‘We must be robust in our approach. Based on the comments of the Taoiseach there is room for manoeuvre.’ Social Democrat TD Gary Gannon added: ‘It must now be a priority for the Government to remove any possibility of complicity when it comes to Putin’s allies funnelling their money through Irish vehicles in the IFSC. We can no longer pretend to be blind on these issues.’
In response to queries about the new legislation, a Government spokesperson said the Coalition ‘would consider the [Magnitsky] Bill if tabled again at Committee by Brendan Howlin’. This response was echoed by the Department of Justice, which said: ‘It is important any new law in this area would be implementable and effective. The Government would, of course, consider the Bill again if it is tabled at committee stage by Deputy Howlin and the Labour Party.’