Michael McGrath told a gathering of EU diplomats at the NTMA’s North Wall headquarters yesterday that awarding the agency to a smaller country would make a “powerful statement” and help dilute “the concentration of activities in existing centres”.
Frankfurt, Paris and Luxembourg, which already host big-name EU institutions and agencies, are among 10 countries to express an interest in hosting the new anti-money laundering agency (AMLA). A deadline for official applications closes on November 10.
“We are convinced that we have a very strong case, given the strength of our international financial services sector here in Ireland, the connectivity that Dublin offers, the diversity, the multicultural aspect of our society,” Mr McGrath told the Irish Independent.
“We are convinced that we will do a good job, given the opportunity, but it’s going to be really competitive.”
MEPs, who have been traditionally critical of Ireland’s reputation on tax and money laundering – repeatedly labelling the country a tax haven – will have a vote for the first time on the AMLA.
We are convinced that we have a very strong case
Just this week, the Paris-based EU Tax Observatory classed Ireland as a tax haven, saying firms here paid an effective tax rate of just 7pc in 2020.
“I think we can point to a track record of reform in recent years, when you consider the whole range of changes on corporation tax,” Mr McGrath said. “I think we’ve got a strong argument in favour of Ireland, in that sense, and we look forward to explaining our case to all of our colleagues in the European Parliament.”
The AMLA is the mainstay of the bloc’s new rulebook to fight financial crime, which is in the final stages of talks in Brussels.
It is expected to start off with between 250 and 400 staff, but Irish officials estimate there could be 600 people employed there by the end of the decade.
According to conditions laid out by the European Commission, a host country must have access to qualified staff, suitable office space, “adequate” accommodation and public transport and “appropriate” jobs, schools, benefits and healthcare for families of agency staff.
The country should also have good track record on fighting money laundering.
Ireland lost out to Paris in a race to secure the EU’s banking regulator from London six years ago.
