Firms’ fury at laws to curb money laundering

RETAIL stores, builders and garages are among businesses to be hit by tough EU money laundering laws agreed yesterday.

The directive means all businesses dealing in single or linked cash payments of more than €15,000 will have to disclose suspicious transactions to authorities.

Small businesses said the law would put them in an “intolerable” situation.

“You take SSIAs (Special Savings Incentive Accounts), when they reach maturity in 12 months there will be tens of thousands of people with the cash equivalents of €30,000,” said Pat Delaney of the Small Firms Association.

“They will be out buying consumer goods. We expect €6 billion of the estimated €15bn from SSIAs to go directly into goods like cars, holidays and home improvements.

“Why should a business person, whose sole aim is to sell his or her goods, have to ask people where they got their money from, who they are and do more paperwork? It’s unworkable and will put businesses in an intolerable situation.”

The measure was agreed by EU finance ministers yesterday and extends money laundering requirements beyond financial institutions and 10 professions.

Estate agents, solicitors, accountants and other bodies already have to report suspect transactions to the Revenue Commissioners and the Garda Bureau of Fraud Investigation.

Businesses affected by the extension include builders, tradesmen, travel agents, garages, kitchen retail outlets, department and audio-visual stores, jewellers, bookmakers and hotels.

Internal Market and Services Commissioner Charlie McCreevy said yesterday: “Close cooperation between the European Parliament, the Council and the Commission has enabled the swift adoption of this crucial directive, which will boost the fight against terrorist financing and organised crime.”

The Third Anti-Money Laundering Directive said businesses affected will have to carry out more detailed requirements to verify the identity of their customer and, where necessary, the beneficial owner.

The Department of Finance said it “no difficulties” with the directive and said it “strengthened” the previous directives.

A spokesman said it had two years to implement the directive.