Protected Disclosures Commissioner Plays Key Role in Uncovering Corporate Fraud

The Protected Disclosures Commissioner (PDC) has been instrumental in uncovering corporate fraud cases in recent months, playing a crucial role in the fight against corruption and money laundering.

Investigations into High-Profile Fraud Cases

According to sources, the PDC has facilitated investigations into several high-profile fraud cases involving financial institutions and corporate entities. One notable case involved Dentons acting on behalf of Sharon Barrett of Kroll Advisory as receiver in a fraud case before the High Court. The court’s ex-tempore judgment highlighted the importance of appointing a receiver at the post-judgment stage to access information and documents that would not be available to judgment creditors alone.

Anti-Money Laundering Measures Strengthened

In another development, the Minister for Finance signed a Statutory Instrument (SI) amending regulations governing the beneficial ownership of corporate entities. The new rules restrict public access to the Register of Beneficial Owners, making it only accessible by Competent Authorities and Designated Persons.

• The move follows a European Court of Justice decision in November 2022, which found that public access to beneficial ownership information constituted a serious interference with fundamental rights to respect for private life and personal data.
• The Register is now only accessible by authorized individuals from the Central Bank of Ireland (CBI) and An Garda Síochána.

Bribery and Corruption Continue to be a Concern

The Corporate Enforcement Authority (CEA) has brought several enforcement actions against individuals for breaches of the Companies Act, including cases involving false companies’ office filings. The CEA is also seeking enhanced surveillance and seizure powers to combat corporate fraud.

• The Competition (Amendment) Act 2022 introduced an offence of bid-rigging.
• The Central Bank of Ireland has imposed significant fines on financial institutions for regulatory breaches related to the tracker mortgage scandal.

Sanctions Tightened

The European Union has announced a new round of sanctions against Russia and its supporters in the war against Ukraine. The measures include an “anti-circumvention tool” to restrict the sale, supply, transfer or export of specified sanctioned goods and technology to certain third countries.

• In a separate development, the High Court ruled that the presumption of control by a sanctioned parent company is rebutted when a liquidator has been appointed to its subsidiaries.
• The decision has significant implications for companies with interests in sanctioned entities.

Conclusion

The PDC plays a vital role in uncovering corporate fraud and ensuring accountability in cases involving financial institutions and corporate entities. Its efforts have contributed significantly to the fight against corruption and money laundering, and will continue to be an essential part of Ireland’s anti-corruption landscape.