Money laundering - Organised crime must be tackled
The total up to June of this year is already over 1,900.
A concerted effort is being undertaken to tackle money laundering on a European-wide scale. The European Commission has issued a detailed directive stipulating that business people engaged in any transaction involving over €15,000 in cash should be obligated to check the identity and legitimacy of purchasers.
This directive requires adoption by both the EU Council of Ministers and the European Parliament.
As part of the crackdown, legislation is before the Oireachtas to give the Criminal Assets Bureau powers to seize proceeds of foreign criminal activity.
The legislation will provide for fines of up to €1,200 and up to a year in jail on conviction of money laundering in a district court and an unlimited fine and up to five years in prison for those convicted on indictment.
The law in relation to money laundering is to be extended to all businesses that deal with any cash transaction or even a series of transactions that amount to over €15,000 in cash.
Hitherto this law only applied to financial institutions and named professions such as solicitors, accountants and estate agents, who were obligated to inform authorities of cash transactions above the threshold.
Some businesses such as garages and bookmakers have traditionally been an easy way for criminals to launder money. The CAB drew particular attention last year to the use of back street garages by major criminals for such purposes.
Many of the gambling casinos in the US are owned by leaders of organised crime. Thus the concerted efforts to tackle these problems before they get a stronger hold in the EU should be welcomed.
In addition to counteracting money laundering, Frits Bolkestein, the Internal Market Commissioner, has emphasised the directive is also designed to cope with terrorist financing.
The proceeds of criminal activities can do irreparable damage to the strength and reputation of financial institutions, while terrorism can shake the foundations of even a well-ordered society.
The directive also targets the legitimate raising of money, if it is for terrorist purposes. This could have distinct implications for the fundraising activities of Sinn Féin if the commitments of the Good Friday Agreement are not implemented properly.
Attempts to track money laundering will henceforth be extended to include builders and construction companies, as well as hotels, travel agents and certain retail outlets.
It will include all those handling goods and service, especially trusts and company service providers, such as life insurance intermediaries.
This is necessary in order to crack down on domestic and foreign crime bosses operating in this country.
The Small Firms Association has understandable fears about the burden the directive will place on small businesses that deal in large cash sales. It will require them to engage in customer identification checks.
These may pose some unwarranted problems, but they will be nothing like the problems that will ultimately develop if crime bosses are allowed to operate with relative impunity.
