Money laundering cases rise 30%

THERE was a 30% increase in the number of suspected money laundering transactions last year, according to new statistics.

Official figures show that the number of such transactions reported to the gardaí rose from 4,254 in 2003 to 5,491 in 2004.

Justice Minister Michael McDowell made the figures available to the Dáil in response to a question from Fine Gael TD Bernard Durkan. Mr McDowell said the number of suspicious transaction reports (STRs) received at the Money Laundering Investigation Unit of the Garda Bureau of Fraud Investigation (GBFI) “continues to increase.”

He said that all STRs were investigated by the specialist unit to see if the funds were linked in any way with criminal activity.

Mr McDowell said that, where appropriate, the cases were referred to the Criminal Assets Bureau (CAB), which followed the money trails to see if they were connected with assets, such as properties or vehicles.

The increase in STRs is thought to be largely due to a higher level of compliance among the professions and an expansion in the number of bodies obliged to file reports.

Following an EU directive which came into force here in September 2003 the number of professions increased substantially.

Under the Criminal Justice Act 1994, financial institutions and 10 designated professions must report suspicious cash transactions of €15,000 or more.

The bodies include solicitors, accountants, auctioneers, estate agents, tax advisers, auditors and dealers in high value goods.

The reports must be sent to both the GBFI and the Revenue Commissioners, who co-ordinate among themselves how to investigate the cases.

Persons convicted in the district court of failing to report suspicious transactions face up to 12 months in prison and/or a fine of €1,270.

The penalties increase to a possible five-year jail term and/or unlimited fines on indictment before a higher court.

Neither gardaí nor Revenue provide figures on the number of prosecutions that result from STRs.

Mr McDowell also told the Dáil that €7 million worth of counterfeit products were seized by the gardaí in 2004. He said the Garda National Bureau of Criminal Investigation targets persons suspected of involvement in racketeering, particularly the production and sale of counterfeit goods, such as CDs and DVDs.

Mr McDowell said the gardaí were also aware of the potential for threats to and intimidation of witnesses, particularly in prosecutions against serious criminal gangs.