As warned by the Dáil, protocols targeted against money laundering and the funding of terrorism unjustly assume that public officials are culpable of corrupt practices unless proven otherwise. These regulations also heavily scrutinise the bank accounts of such figures, including those of family members and acquaintances. Several relatives of politicians have either experienced their loan applications being rejected or significantly delayed due to their familial ties.
Fianna Fáil TD and chairman of the Oireachtas Finance Committee, John McGuinness, described politicians, their kin and connections, such as parliamentary secretaries and ushers, as “Politically Exposed Persons” or PEPs. Ceann Comhairle Seán Ó Fearghaíl related a personal account when his children, upon opening credit union accounts with semi-regular income from part-time jobs, were annually required to disclose the source of their funds to ensure none were illegally obtained. Seán’s eldest daughter, who is employed in the financial sector, was denied a savings scheme because she was classified as a PEP, despite her application making no mention of such.
Seán Ó Fearghaíl also voiced his concerns about the maintenance of cash-funded properties and money laundering. His comments were made during the Dáil’s discussion on the committee’s report on PEPs. The report explains an EU directive from 2010 which was later incorporated into Irish law. It advocates for stricter banking regulations for politicians and their close contacts to deter corruption.
John McGuinness highlighted the unfair stipulation that family members of politicians had to declare their PEP status as if they were implicated in some criminal activity. He further disclosed several TDs’ experiences with loan applications: while not openly rejected, the process was bothersome enough to discourage them from pursuing it. Secretaries of TDs and senators and ushers at Leinster House are also classified as PEPs.
Finally, he concluded that while everyone in the House or working in councils endorses a transparent process that promotes honesty, the current measure has crossed the line. He underscored the necessity to halt the overbearing bureaucracy.
The notion of “associates” in the law lacks a clear definition, as pointed out in a discussion about whether people such as those providing office cleaning services might be considered politically vulnerable. These concerns were voiced by Catherine Connolly, an independent TD, who highlighted her continuous support for transparency and accountability.
In her opinion, the monitoring of activities should occur but not in such a way. She deemed the approach as utterly shocking. In addition to being vague, the legislation could lead to account closures and fund freezing, she warned. She also noted that every single transaction was subject to inspection, of which politicians were often unaware.
She criticised the assumption that all elected officials were guilty until proven innocent, and furthermore, the procedure was not made clear. She branded the approach as outrageously unequal, ineffective and claimed there was a lack of information on who was doing what, for how long, on successful prosecutions and convictions, and on the effectiveness of the measure.
Sinn Féin spokeswoman, Rose Conway-Walsh underscored the findings of the report on the potential for money laundering via the abuse of legal entities. She argued that anti-money laundering mechanisms were inefficient against more intricate methods that exploited trusts, shell and section 110 companies. She noted that trusts were more prevalent in Ireland than many other European Union countries owing to its common law-based legal framework.
The necessity of reassessing this legislation was recognised by Minister of State for Finance Neale Richmond, upon a directive set by Minister for Finance Michael McGrath. Neale shared his understanding of TDs’ frustrations, relating it to his own financial experiences. Despite this, he upheld the significance of effectively carrying out these measures for establishing a sturdy domestic plan to counter money laundering and terrorist funding in Ireland. He concluded that these actions aligned with international standards and best practices.