The Dail Committee on Members' Interests will have powers similar to a court of law when it starts its investigation to determine whether Mr Denis Foley breached the Ethics in Public Office Act.
The committee, which is chaired by a Fianna Fail TD, Mr Tony Killeen, is expected to begin hearings in early March.
A legal adviser to the committee, who will be appointed in the next few days, will have to prepare the procedures for the conduct of the investigation, which will be the first since the Ethics Act was introduced in 1995.
The committee will be investigating a complaint from the Labour Party leader, Mr Ruairi Quinn, who has alleged that Mr Foley acted in breach of Section 7 of the Ethics Act.
That section requires members to make a declaration when voting or speaking on a matter in the Dail in which they have a material interest.
In September 1997 Mr Foley voted on a Dail motion relating to the Moriarty tribunal. At the time he had an Ansbacher account.
The committee is due to meet on February 22nd to finalise these procedures, which will include the manner in which legal representatives can question witnesses.
Mr Foley will have the right to be legally represented at the hearings. The committee has written to the Kerry North TD formally informing him that the investigation is under way.
A person giving evidence at the committee's hearings will have the same privilege and immunities as those of a witness in a court.
The committee will issue a written report after the investigation. If Mr Foley is found to have breached the Ethics Act he can be censured by the Dail and/or suspended for 30 sitting days of the Dail.
In effect, this would mean Mr Foley would be suspended from speaking and voting in the Dail until after the summer recess.
The five-member committee can reach a decision on the alleged contraventions of the Ethics Act by a majority vote. However, the view is that cross-party consensus will be sought on the issue.
Along with Mr Killeen, the other members of the committee are Mr Liam Lawlor of Fianna Fail; Mr John Browne and Mr Jim O'Keeffe of Fine Gael; and Mr Brendan Howlin of the Labour Party.