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What is the Corporate Enforcement Authority?
The Corporate Enforcement Authority (CEA) is a more powerful version of the Office of the Director of Corporate Enforcement (ODCE) in Ireland. It has been described as Ireland’s company law enforcement agency. The CEA investigates suspected company law violations and prosecutes white-collar crimes.
What will the Corporate Enforcement Authority do?
The CEA will have stronger powers to investigate more significant, more complex cases of suspected criminal activity, such as fraudulent trading.
Ian Drennan, director of corporate enforcement at the CEA, said the authority marks a watershed moment for Ireland’s strategy on addressing economic and white-collar crime.
“With enhanced autonomy and significantly increased levels of investigative assets – including additional legal and digital forensics professionals and seconded members of An Garda Síochána – the Corporate Enforcement Authority will assume the ODCE’s current caseload and will, I anticipate, continue to build on the ODCE’s forensic and robust approach towards tackling serious breaches of company law and associated wrongdoing in both civil and criminal realms,” says Drennan.
The authority will have all the necessary human resources required, both Civil Service and members of An Garda Síochána, to pursue breaches of company law.
The Corporate Enforcement Authority’s powers
Since the CEA is statutorily independent, it will have more flexibility in recruiting specialist staff. (This is the main additional power, the ability to recruit experts when they are needed.) The CEA also works more closely with the police.
“I am pleased that this authority will have all the necessary human resources required, both Civil Service and members of An Garda Síochána, to pursue breaches of company law,” said Leo Varadkar at the launch of the CEA.
“Already, the budget of the ODCE has been increased by 20% or €1 million to €6.057 million, and my Department has sanctioned 14 additional staff to be assigned to the CEA.”
“The permanent complement of members of An Garda Síochána will double from seven to 16, and so the CEA’s total headcount will have increased nearly 50% over existing levels.”
The CEA will have a forensic and robust approach towards tackling serious breaches of company law and associated wrongdoing in both civil and criminal realms.
How will the CEA investigate breaches of company law?
“With enhanced autonomy and significantly increased levels of investigative assets, including additional legal and digital forensics professionals and seconded members of An Garda Síochána, the CEA will have a forensic and robust approach towards tackling serious breaches of company law and associated wrongdoing in both civil and criminal realms,” says Ian Drennan.
Why was the Corporate Enforcement Authority established?
The CEA was established because the ODCE lacked ‘proper teeth’.
The ODCE’s establishment as an independent agency was part of the Irish government’s ‘White-collar crime package’ of measures to enhance Ireland’s capability to combat corporate, economic, and regulatory crime.
ODCE’s historic under-funding has been well-documented and came into sharp focus when the trial of Sean Fitzpatrick collapsed.
In December 2018, the Department of Business, Enterprise and Innovation reviewed the ODCE investigation. They found it lacked the skills, experience, and risk management processes needed to launch multiple complex investigations simultaneously.
The CEA is an independent agency rather than an office in the Department of Enterprise, Trade and Employment, which allows it to hire staff and determine their pay grades with the approval of the Minister.
What is the difference between the ODCE and the CEA?
The CEA’s statutory duties are similar to those of ODCE. However, the critical difference is that the CEA is an independent agency rather than an office in the Department of Enterprise, Trade and Employment, which allows it to hire staff and determine their pay grades with the approval of the Minister.
Therefore, the authority will have a greater degree of autonomy in recruiting specialists to handle the investigations.
As part of this autonomy, the budgetary allowance was increased by one million euros to six million in 2021.
Additional specialist staff, including legal and digital forensic experts, will be needed to allow the CEA to carry out investigations.
The CEA will be able to acquire passwords for electronic devices, conduct surveillance, and permit officials to participate in interviews alongside Gardai.
Will the CEA have any new investigatory powers?
The CEA’s powers will be similar to those of the ODCE, but somewhat stronger.
The additional powers are the ability to acquire passwords for electronic devices, conduct surveillance, and permit officials to participate in interviews alongside Gardai.
