Hot money in the spotlight

DRUG dealers, money launderers and tax evaders are coming under the scrutiny of UCC money traceability project being conducted on behalf of the Financial Regulator.

The Financial Services Innovation Centre (FSIC) at UCC is investigating whether IT traceability technology can help State authorities identify money which is being exported illegally from Ireland. These studies are examining monies being transferred physically and electronically, tracing them with the aid of biometrics (finger-tip recognition, etc) and other cutting edge IT technologies.

The primary focus of the study will be to examine monies being repatriated by immigrant workers in Ireland, partly to ensure that they are not paying excessive transaction fees. The study will also assess whether new technologies can help ensure all monies have entered the Irish taxation system before leaving the country.

FSIC development director JB McCarthy explains: “We are conducting a study on remittance technology for emigrant workers located in Ireland on behalf of the consumer panel of the Financial Regulator. The consumer panel wants to be able to regulate to protect these workers against high transaction fees. We are working on a briefing document to see where the regulator’s obligations lie. They want to know if there is any gap in the regulations.”

If successful, this study could also be adapted to provide an effective tool in tracing tax-evading monies. Some of which could relate to illegal money dealing and illicit criminal activities.

The FSIC is the innovative new wing of UCC’s Business Information Systems department. These twin departments are already working on projects to enhance the usage of IT technologies for private partners such as the US Federal Reserve, the Boston Federal Reserve Bank and the Bank of Ireland.

Biometrics is already being used in areas such as passport control.

The use of this technology in banking circles is a major coup for Irish third level IT research.