‘Law should allow banks to share fraud data’
A Government strategy aimed at combating economic crime and corruption has recommended legislation to overcome obstacles to the sharing of information on suspected fraudulent activity.
The strategy, developed by the Advisory Council against Economic Crime and Corruption, was launched yesterday (10 September).
It points out that, while current laws enable information sharing within the public sector, “information silos between public and private organisations hinder the ability to fully leverage available data to effectively combat economic crime and corruption”.
The report says that banks cannot currently share information on suspected criminal and fraudulent activity, as there is no legal basis to do so.
British database
It cites the example of Britain’s National Fraud Database (NFD), a cross-sector database where member organisations share information about fraudulent conduct.
“In Ireland, the absence of such a mechanism to share information impedes the effectiveness of Ireland’s response to economic-crime threats,” the strategy states.
It acknowledges that the Department of Justice has prioritised the development of legislation to provide the necessary legal basis for a shared fraud banking database.
It adds, however, that such information-sharing should extend beyond financial institutions to also include fintech, social media companies, online-service providers and telecommunications companies.
Corporate liability
The strategy also calls for a review of Ireland’s corporate-liability framework, referring to an offence of ‘failure to prevent fraud’ introduced in Britain in 2023.
“The attribution of corporate criminal liability remains an impediment to the successful prosecution of corporate bodies, particularly in relation to offences involving a subjective fault-based element, such as theft and fraud,” it states.
The report says that measures to tackle corporate offending would enhance accountability and ensure that companies were held responsible for failing to prevent economic crimes.
Non-cash assets
The strategy also calls for a review of the operation of the Criminal Justice Act 1994, which allows the Criminal Assets Bureau (CAB) to seize and freeze assets it shows to be the proceeds of crime, even in cases where there has been no criminal conviction against the individual.
It points out, however, that the 1994 act’s provisions limit CAB’s options to seize non-cash assets, such as bank accounts or luxury goods, in cases where there has been an acquittal in a criminal prosecution.
The strategy also recommends legislation to allow the Competition and Consumer Protection Commission to analyse data on bids for public tenders that could help detect cartel behaviour, bid-rigging, and any accompanying corruption offences.
It notes that the competition watchdog is engaging with the Department of Enterprise, Tourism and Employment on proposed legislation on the issue.
International initiatives
The strategy also notes that Ireland does not participate in several key international initiatives focused on asset recovery and confiscation, citing Interpol’s Silver Notice as an example.
"Economic crime and corruption undermine public trust, damage our economy, and threaten Ireland's international reputation,” said Minister for Justice Jim O’Callaghan (pictured).
He added that the strategy provided “a clear roadmap” for strengthening Ireland’s collective response.