Office of the Protected Disclosures Commissioner (PDC) Plays Key Role in Combating Corporate Fraud

Recent Case Highlights Importance of Appointing a Receiver at Post-Judgment Stage

In a recent fraud case involving Dentons acting on behalf of Sharon Barrett of Kroll Advisory as receiver in a High Court matter, the importance of appointing a receiver at the post-judgment stage was highlighted. The court ruled that financial institutions holding bank accounts over which the receiver has been appointed must furnish bank statements and details of financial transactions for those accounts to the receiver.

Office of the Protected Disclosures Commissioner (PDC) Plays Crucial Role in Receiving and Identifying Protected Disclosures

The Office of the Protected Disclosures Commissioner (PDC), within the Office of the Ombudsman, plays a crucial role in receiving and identifying the prescribed person or another suitable person competent to take appropriate action on protected disclosures. In circumstances where no appropriate person can be identified by the PDC, the Commissioner will follow up directly on the report.

PDC’s Efforts Complement Those of Regulatory Bodies

The PDC has been at the forefront of tackling corporate fraud, with its efforts complementing those of regulatory bodies such as the Corporate Enforcement Authority (CEA), which was established in August 2022. The CEA has brought several enforcement actions against individuals for breaches of the Companies Act, including false company filings.

Preventing Money Laundering and Bribery

In addition to combating corporate fraud, the PDC is also working to prevent money laundering and bribery. The recent amendment to regulations governing the beneficial ownership of corporate entities by the Minister for Finance aims to ensure that access to the Register of Beneficial Owners (Register) is restricted to Competent Authorities and Designated Persons only.

Suspended Public Access to Register

The Register, operated by the Companies Registration Office (CRO), was previously accessible to the public but was suspended following a European Court of Justice decision in November 2022. The suspension was due to concerns that access to beneficial ownership information constituted a serious interference with fundamental rights to respect for private life and protection of personal data.

Collaboration with Law Enforcement Agencies

The PDC is also working closely with law enforcement agencies, such as An Garda Síochána’s Garda National Economic Crime Bureau (GNECB), which has been investigating allegations of insider trading. In June, a businessman was charged with insider trading following an investigation by the GNECB.

Ensuring Compliance with Sanctions

In the area of sanctions, the PDC is working to prevent circumvention and ensure that restrictions on the sale, supply, transfer or export of specified sanctioned goods and technology are enforced. The recent High Court ruling in July regarding the presumption of control by a sanctioned parent company has also been closely monitored by the PDC.

Conclusion

As the Office of the Protected Disclosures Commissioner continues to play a key role in combating corporate fraud and promoting transparency and accountability, it is clear that its efforts will remain essential in protecting the integrity of Ireland’s financial system.