Money laundering crime has surged in the Republic to unprecedented levels, with thousands of cases now coming to the attention of gardaí annually for the first time.
The number of money laundering crimes gardaí dealt with last year was close to 2,800, The Irish Times has established, and gardaí are struggling to deal with the volume.
There are difficulties in properly investigating such a large number of offences, and to block some crimes before stolen funds, or the proceeds of crime, are moved beyond reach or withdrawn.
Many of the cases require specialist investigation, including securing records from financial institutions, and often unpicking a network of suspects and accounts all tied to each other.
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Less than a decade ago, about 2017, there were some 50 money laundering cases a year reported to the Garda. That had increased to 996 by 2024 and then surged to 2,768 such crimes recorded last year.
Gardaí have been investigating the Black Axe gang – a big international fraud outfit with a cell and leadership structure in Ireland. It has resulted in the identification of thousands of suspects who have allowed their bank accounts to be used, for a fee, to move and launder money.
Increasingly, when drug gangs or gangland feuds are investigated, a strand of those investigations will involve identifying money laundering. This has most recently applied to some of the key figures in the Drogheda drug feud and those engaged in a gang feud across west Dublin, resulting in the deaths of Tristan Sherry (26) and Jason Hennessy snr (48) after a steakhouse shooting in Blanchardstown, Dublin, on Christmas Eve, 2023.
In many cases, when gangs are investigated for money laundering, it has led to a network of suspects, including family members and partners, all moving cash generated by the main suspects. The people found moving the money often have no criminal records and no other suspected involvement in crime other than offering support.
During the Covid-19 pandemic, the growth in money laundering sharply accelerated. It is often tied to the type of scams – based on bogus emails, texts and voice messages – that became prevalent during the period. However, the rate of offending has increased exponentially since then.
The scale of the offences now under investigation represents an increase far beyond any trend witnessed with any other crime type in the modern era. However, Garda sources said the number of crimes coming to their attention is still likely only a fraction of the true level of money laundering across society.
In reply to queries, Garda Headquarters said there had been 741 money laundering arrests last year, a record number and up from 53 in 2017. Money laundering arrests are well on track to exceed 1,000 this year, with 253 in the period to late March.
Garda Headquarters added that more members of the force were now undergoing a postgraduate certificate in Fraud & E-Crime Investigation. It included a money laundering module and was run by the Garda National Economic Crime Bureau (GNECB) in conjunction with University College Dublin.
“All gardaí are actively encouraged to consider the financial flows behind every investigation and to ‘follow the money’,” said Garda Headquarters.
Furthermore, the GNECB had also established the Financial Intelligence Unit, into which financial institutions and financial services providers, including those running apps for money transfers, can report suspicious transactions, which have increased in recent years.
Gardaí were also increasingly using their powers under section 11 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, said Garda HQ. This allowed for the prosecution of suspects for money laundering when money, assets and other forms of wealth were identified.
