Ireland ‘unable to freeze criminal assets’ due to failure to take part in international initiatives

The Government document says Ireland's failure to participate in key international initiatives is making it 'significantly more difficult' to freeze and confiscate criminal assets. Picture: iStock

Ireland’s failure to participate in key international initiatives and conventions is making it “significantly more difficult” to freeze and confiscate criminal assets and incomes, particularly if they cross borders, according to a Government document.

The National Economic Crime and Corruption Strategy also states that Ireland “must enhance” its laws on confiscating proceeds of crime in cases involving a criminal conviction.

The document says the problem in the criminal system contrasts with the civil law process — as operated by the Criminal Assets Bureau — which it says has been successful in the “aggressive pursuit” of assets linked to organised crime. The strategy, developed by the Advisory Council against Economic Crime and Corruption, also recommends:

• Legislation updating Ireland’s ethics in public life obligations is “long overdue”;
• Ireland’s current data picture on economic crime and corruption is incomplete, making it difficult to produce accurate assessments and analyse current and emerging threats;
• Banks or regulators do not share within their sectors information on suspected criminal and fraudulent activity because there is no legal basis to do so, and for fear of breaching data protection rules;
• Economic crime and corruption cases “struggle to find sufficient priority” in the courts and dedicated court lists, sittings or a specialist court could help;
• Ireland should consider introducing ‘non-trial resolution measures’ or ‘deferred prosecution agreement’ regimes as a means of corporate compliance and administrative sanctions — and avoid lengthy and costly court trials.

The advisory council’s report noted that, according to EU estimates, only 1-2% of estimated criminal profits are confiscated. It said that Ireland’s asset confiscation system is internationally rated to be “only of a moderate level of effectiveness”.

The report said Ireland did not participate in several key international initiatives on asset confiscation, which “could significantly” strengthen operations.

This includes Interpol’s ‘Silver Notice’ system, Europol’s Project ASSET initiative, the EU Asset Recovery and Confiscation Directive, and a Council of Europe convention.

The report said: “Ireland’s non-participation in these instruments renders it significantly more difficult to freeze, confiscate, and dispose of assets and the proceeds of crime, particularly on a cross-border and transnational basis.”

• Cormac O’Keeffe, Security Correspondent