A LAW under which a Garda fraud officer directed a bank to freeze two accounts of a company suspected of involvement in money laundering was declared unconstitutional by a High Court judge yesterday. The relevant law has since been repealed under a money laundering Act introduced earlier this year.
The issue of the right to damages of Vehicle Tech Ltd arising from the finding of unconstitutionality of Section 31.8 of the Criminal Justice Act 1994 was adjourned for mention as a criminal investigation is continuing.
Ms Justice Mary Laffoy said it seemed to her, if the money in the accounts was, or represented, the proceeds of criminal conduct, the company could not establish any loss or damage as a result of the direction and therefore would have no entitlement to damages.
However, the issues relating to entitlement to damages had not been argued in any depth at this stage by the parties in the case and should be adjourned, she directed.
The case arose after the Garda Bureau of Fraud Investigation issued a direction to Allied Irish Banks in July 2008 under Section 31.8 of the 1994 Act not to deal in any way, without the consent of a detective garda, with two accounts of Vehicle Tech held in AIB’s Ashbourne branch in which some €152,000 was held.
The direction stated the bureau was conducting an investigation into suspected criminal activities, including money laundering.
The Garda investigation arose as a result of a mutual assistance request received in February 2008 from the Belgian authorities in relation to trucks stolen in Belgium and transported to Ireland where they were sold. It was suspected the proceeds of the sale were laundered here, the judge noted. She adjourned the case for two weeks to allow the sides consider her judgment and any other orders which may be sought as a consequence of her findings.
