IRA ‘past masters at money laundering’

IN the wake of the Northern Bank heist in December, PSNI officers predicted the culprits would have immense difficulty laundering the money because of the make-up of the notes and the large sum involved.

But if indeed the IRA was responsible - as the PSNI, gardaí and both governments believe - it would have had the internal expertise.

The terrorist organisation’s so-called “finance department” has become adept at handling large sums, one expert on the IRA said yesterday.

“This is a very skilled, very experienced department in the IRA,” said Ed Moloney, author of A Secret History of the IRA.

“By this stage after 30 years - dealing with, for example, international bank transfers and dealing with people like the Libyan government who sent them money - (the finance department members) are expert in how the banking system works, both in the United States and in Europe; in North Africa; also in Ireland,” he told RTÉ.

“So I would have no doubt at all that they would have all the skills and resources necessary to launder money that was taken from the Northern Bank,” Mr Moloney said.

The IRA has filtered dirty money through pubs, clubs, bureaus de change, taxi companies and amusement arcades. The cash-only black market has proved another outlet.

Other traditional money-laundering routes, such as the property market, have become more difficult, however.

This is because estate agents, accountants and lawyers are among those in both jurisdictions who, together with financial institutions, are obliged to report suspicious transactions.

In time, construction companies, bookmakers, garages, travel agents and more will have to report suspicious activity, as the list widens to cover all businesses dealing in single or linked cash payments of €15,000 or more.

The IRA, however, is used to overcoming obstacles such as this, Mr Moloney indicated.

“If it comes to a situation where they have to clean or launder money, which would be difficult for them to use otherwise, they will set up businesses,” he said.

“I know of businesses in Belfast for example that have been bought out, or at least the IRA has bought into (them)... The owners are made very attractive offers, and then suddenly the week after the arrangement is made, the paper business that this company is doing suddenly quadruples, or multiplies by six or seven. All on paper, of course, but it’s a way of producing legitimate funds.”