Cooper-Flynn never suspected laundering

Ms Beverley Cooper-Flynn has told the High Court she never had suspicions of money laundering while selling investment policies for National Irish Bank.

She was answering questions from Mr Kevin Feeney SC, representing RTE and journalist Charlie Bird, about CMI Personal Portfolio policies.

Ms Cooper-Flynn agreed that in 1994 a letter was sent by CMI to NIB in relation to the prevention of money laundering.

She also agreed the letter coincided with legislation concerning money laundering and discussions between banks the gardai.

Mr Feeney said each bank had an officer to deal with the situation where a bank official had a suspicion.

Ms Cooper-Flynn said there had been a circular in NIB on money laundering which asked staff to watch out for anything suspicious. Asked if there was ever a suspicion in her mind, she replied there was not.

Later, counsel put to the TD that the Comptroller and Auditor General had reported that 220 bank customers had paid some £12 million to the Revenue authorities and another £7 million was paid by others on account of future tax liabilities.

None of that would have occurred if it were not for RTE exploring the CMI Personal Portfolio scheme, he suggested.

Ms Cooper-Flynn said she had no idea whether that was the case.

She had sold 47 Personal Portfolios while working for NIB and had an excellent relationship with all her customers. She believed it was an excellent product.

Yesterday was the seventh day of Ms Cooper-Flynn's action alleging libel against RTE, Mr Bird and a retired farmer, Mr James Howard, of Acorn Way, Wheaton Hall, Drogheda, Co Louth. The defence denies libel.

On her sixth day in the witness box, Ms Cooper-Flynn agreed a questionnaire was attached to the letter sent by CMI to NIB in 1994 in dictating that questions be asked in relation to any investments in excess of £250,000.

She did not think any initial investment she had dealt with was over £250,000. It was possible people "topped up" their investments to more than £250,000 and she was sure there were several investments of over £250,000. She did not believe she had filled out the questionnaire.

Asked if she would agree it would have been appropriate to inquire into what was the source of the investments, Ms Cooper-Flynn said she never inquired into the source of funds invested. Customers were referred to her by a bank manager. It was not her job to cross-examine customers of the bank as to where they had their money. They simply stated how much they had to invest.

Mr Feeney said he would call experts who would say the CMI products made no sense on an investment basis. Ms Cooper-Flynn said there were significant advantages for investors.

Counsel said RTE would also call experts who would say that, following the 1993 Finance Act, NIB was obliged to disclose the sale of offshore policies to the regulatory authorities.

Ms Cooper-Flynn said she was not aware of that. Her counsel, Mr Garret Cooney SC, intervened and said failure to make disclosure under the 1993 Act was never part of the case against his client.

Mr Feeney said part of the pleadings was that the CMI scheme was set up and operated in such a manner as to facilitate the movement of "hot money" offshore.

Ms Cooper-Flynn agreed she had indicated to a customer, Ms Joan Quigley, what her inheritance tax liability would be. Part of her job was to outline the tax features of a policy. She was not a tax expert and did not give tax advice.

She said she had spoken to her family, including her father, former EU Commissioner Mr Padraig Flynn, on June 19th, 1998, the day she had received a letter from RTE and prior to the first RTE broadcast that evening.

She did not accept RTE had always included her statements in broadcasts subsequent to the Six One News on June 19th 1998. Her first statement was issued at 7.30 p.m. that day and was broadcast on the 9 p.m. news. Another statement she issued was completely ignored.