A reveiw of anti-money-laundering rules for politically exposed persons (PEPs) has been initiated after being cited as too restrictive by an Oireachtas committee, writes Craig Hughes.

In December, the Oireachtas Finance Committee published a report which found the current system was “preventing PEPs, their close associates and family member from undertaking routine banking transactions”.

In one case, digital bank Revolut froze the account of a man whose last name was ‘Ryan’ because he refused to answer whether he was related to Minister for Transport Eamon Ryan.

In another, the daughter of an excounty councillor in the west received questions from Revolut about him, what his political views were and if she agreed with them – despite him losing his seat in 2014.

Other cases have emerged of siblings and children of TDs having Revolut accounts frozen due to being related to the politician.

A PEP is defined as an “individual who is or has been entrusted with a prominent public function”, and “due to their position and influence”, many are in “positions that potentially can be abused for the purpose of committing money-laundering offences and related predicate offences”.

The Finance Committee report recommended a joint review be undertaken by the Department of Justice and Department of Finance.

Internal documents from the latter department obtained by BusinessPlus.ie show former finance minister Michael McGrath approved the review of anti-money laundering measures relating to PEPs earlier this year.

Submissions are being sought from financial and credit institutions, with explanations provided for why due diligence is so strict.

Revolut will be asked to make an individual submission, after being cited several times in the report as being overly strict.