Mayo TD Ms Beverley Cooper-Flynn told the High Court today she was not responsible for enquiring into the source of money being invested in CMI personal portfolios.
She sold the product when working as a financial consultant for the National Irish Bank (NIB).
Ms Cooper-Flynn was being cross-examined by Mr Kevin Feeney SC, counsel for RTÉ and Mr Charlie Bird, who she alleges libelled her in 1998 in reports claiming she encouraged investors to evade tax.
Mr Feeney was questioning Ms Cooper-Flynn on the change of practices after the introduction of anti-money laundering legislation in 1994.
She said a document was circulated in April 1994 warning staff to "be alert" in relation to money-laundering following this legislation. Ms Cooper-Flynn said formal identification of investors and completion of a questionnaire was required when an initial investment of over £250,000 was involved.
Ms Cooper-Flynn told the court that of the 47 CMI policies she sold, the average investment was in the region of £150,000.
She told Mr Feeney that in a number of these cases, subsequent investments would have raised the capital to over £250,000 but she claimed she never "came across any suspicious behaviour".
"You never sought from them any explanation as to where this money came from?" Mr Feeney asked.
"No. They were already existing customers of CMI and therefore would not be required to fill out this questionnaire," Ms Cooper-Flynn said. "People were referred to me by the NIB and I gave them investment advice."
Mr Feeney said: "And it never occurred to you after the new legislation was brought in to enquire as to source of the funds?"
Ms Cooper-Flynn said: "No. It was not my job to cross-examine investors on where they held their money . . . when you are giving independent investment advice it is not necessary to know where their money was held or why."
Mr Feeney put it to Ms Cooper-Flynn that her customers were only interested in anonymity and that the amount of interest they could accrue was not important.
"You were inducing people who did not wish to pay tax to buy this policy," he said. "No, I was not," Ms Cooper-Flynn said.
"It was an utter financial disaster because the Revenue found out it was 'hot money'," said Mr Feeney.
"I strongly deny that . . . customers were constantly inquiring about interest rates, for the very reason that they were interested in their interest returns," Ms Cooper-Flynn said.
The trial continues this afternoon.
