Donegal credit union fined for taking cash from people who were not its members
The 2010 Criminal Justice (Money Laundering and Terrorist Financing) Act requires firms to put in place safeguards against the risk of money laundering.
In a statement, the regulator for the sector said: 'The Central Bank's investigation found that Swilly Mulroy operated a practice of soliciting and accepting cash from depositors who did not hold accounts with the Credit Union.
'This money would then be electronically transferred to a branch of a local bank, without first being deposited in an account in the customer's name at Swilly Mulroy.'
The Central Bank, which incorporates the Registrar of Credit Unions, said as a result of this action, Swilly Mulroy failed to conduct the necessary Anti-Money Laundering checks on the depositors and the transactions.
It said this specific cash intensive practice had been flagged to the credit union sector as presenting a heightened money laundering risk.
The investigation found that Swilly Mulroy operated in this way between January 2014 and June 2021.
Over that period it processed €8,751,694 in deposits from 2,329 cash lodgements.
The Central Bank statement said the 'board of Swilly Mulroy was aware of the risks associated with the practice from 2015 but failed to act on its risk management obligations under the 1997 Act'.
A new management team ceased the practice in 2021 and subsequently brought it to the attention of the board.
ADVERTISEMENT
The issue was not brought to the Central Bank's attention and was discovered in 2022 during an inspection by the Central Bank's Anti-Money Laundering Division, it said.
The Central Bank commenced this enforcement investigation in 2023.
The investigation yielded multiple examples of cash lodgements, which in the usual course should have triggered additional and careful scrutiny but instead were processed without any Anti-Money Laundering checks.
Swilly Mulroy has admitted the prescribed contraventions and has agreed to the undisputed facts in the case.
Central Bank's Director of Enforcement Colm Kincaid said where firms allow gaps in their control framework, they create opportunities for criminals and terrorists to use our financial system to pursue their illegal activities.
'This action demonstrates the Central Bank's continued focus on firms' compliance with their legal obligations to safeguard the integrity of our financial system,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Journal
2 hours ago
- The Journal
Minister wants to 'maintain' insurance reforms before approving personal injury pay-out hikes
THE JUSTICE MINISTER has said he would like to see all progress made to reform the insurance industry maintained before approving a recommendation to increase personal injury awards. Fianna Fáil's Jim O'Callaghan told The Journal today that he has yet to make a final decision on the judicial council's proposal to increase personal injury pay-outs by 17%, which is due to be discussed by cabinet later this month. It comes after a report by the Central Bank yesterday said motor insurance premiums are set to continue rising as the number of claims made and repair costs involved are increasing. As of May 2025, drivers have seen an 8% increase in motor insurance premiums in the last 12 months, the report said. Asked about an upcoming memo, due to be discussed by ministers this month, O'Callaghan said discussions are still ongoing. Advertisement 'In the first instance, no decision has been made in respect of the issue about the person injuries guidelines,' he told The Journal. 'I am, at present, considering them.' He added that he is 'very conscious' of the changes and is engaging with other departments and ministers as a result of the campaigning for insurance reforms that have been completed in recent years. 'We need to maintain [the progress],' he said. 'I am engaging with other cabinet colleagues, we'll have discussions in respect of it. I think government will make a decision on this matter shortly.' O'Callaghan added that he was not going to make a decision in respect of the judicial council recommendation by himself and wanted to include other members of government on the decision. 'I have to take account, for instance, of the Central Bank's Claims' Database Report,' he said, referencing its finding that there's already no financial benefit for those who make claims to have their case removed from the Personal Injuries Resolution Board. He added that government will make a decision on the matter in due course. Reform activists, such as the Alliance For Insurance Reform, have said that there will be no check on costs if ministers approve the proposed increases. It claims that the cost of insurance premiums is already too high, and increasing monthly. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
6 hours ago
- Irish Examiner
'Fagin's Law' offences by adults to groom children into criminality 'difficult to prove', review finds
New offences to prevent children being groomed into criminality are 'difficult to prove' and there is uncertainty over the law's 'operational effectiveness', a review has found. A post-enactment report from the Department of Justice into the Criminal Justice (Engagement of Children in Criminal Activity) Act 2024 said that a 'small number of offences' under the act have been brought before the court since it was enacted. 'Given the short timeframe since the enactment of the Act, very little data is presently available that is relevant to the performance of the Act's individual provisions,' the review said. The long-awaited laws criminalising adults who entice or force a child to engage in any form of criminality came into force last summer. Convictions in the higher courts can lead to a sentence of up to five years in jail under 'Fagin's Law'. It came after successive national drug strategies recommended the measure, given the issues around grooming of children as young as eight to engage in couriering and dealing drugs. Then-Minister for Justice Helen McEntee said the law would be an 'effective tool in tackling organised crime'. To analyse its performance so far, the Department of Justice asked for feedback from the Director of Public Prosecutions, the gardaí, the Courts Service and the Greentown Programme, which works in local areas aiming to disrupt the influence of criminal networks on children. In the case of the DPP, it said it does not collect formal data on offences under the act, while the gardaí said that less than 10 charges/summonses have been issued under the act. The Greentown Programme's management committee meanwhile, said the law has increased awareness around grooming and criminal behaviour. 'This increased awareness has acted as a deterrent for persons considering engaging a child for the purposes of committing a crime and for potential child victims who were previously unaware of the grooming process,' it said. However, it added the offences are difficult to prove and that garda interventions are more focused on more straightforward offences and those with higher penalties such as those to do with drug-dealing and organised crime. Read More Criminals target young people with offers of drugs in exchange for sex
Irish Examiner
a day ago
- Irish Examiner
Ban on services from occupied territories has to 'factor in' US anti-boycott laws, says Taoiseach
The Taoiseach has warned that introducing a ban on services from the occupied territories could negatively impact multinational companies operating in Ireland due to US anti-boycott laws. Micheál Martin said the Government must 'factor in' laws passed in some US states that penalise companies who engage in boycotts, but it was open to including services in the laws if it is legally possible. 'That's an issue we have to factor in, because we don't want any companies or multinationals in Ireland inadvertently being caught up in this,' Mr Martin said. 'The objective is to create pressure on Israel to stop the war and in particular to adhere to international law and in terms of the ICJ (International Court of Justice) judgement.' At present, the Government's legislation to ban trade with the occupied territories in the Palestinian West Bank only applies to goods, not services. Asked if the Government was seeking to prioritise commercial interests over a moral argument, Mr Martin rejected the assertion. 'It's not commercial, like it's putting bread and butter on people's table,' Mr Martin said, citing the 'hundreds of thousands" of jobs from multinational companies in Ireland. 'The object of the exercise here is to put pressure on Israel, not to disadvantage Ireland unduly and that's a factor." Mr Martin said people should be aware the legislation would be 'misinterpreted' within the United States. He added there were other challenges with the legislation, including its potential impact, citing that only €690,000 worth of trade has been done with Israeli occupied territories over the last five years. 'There's no point in Ireland coming out the worse if it had no impact on Israel. That's the only point I'm making, we have to be clear-eyed in terms of the impact. People should know about the impact is what I'm saying,' Mr Martin said. 'We don't want to inadvertently catch companies and have them punished in the United States for something they're not aware of.' The Taoiseach also questioned how it would be possible to prove if services were procured from the occupied territories. 'How do you actually detect, how do you punish the offence, the practicalities around all of that. Those are real and the bill is fundamentally symbolic, it's important.' Mr Martin said there are still 'very narrow grounds' to implement the bill. Anti-BDS legislation is in place across numerous US states, including California and Florida, which can levy sanctions against companies who participate in boycotts against Israel. Gambling legislation Meanwhile, the Taoiseach said he would favour a ban on free bets by gambling companies, adding it should take place if recently passed laws allow for it. 'We don't want young people being lulled into and induced by gambling at an early age, for example, through that mechanism because addiction, once it starts it's very difficult to shed an addiction. Gambling can have catastrophic consequences on families,' Mr Martin said. His comments come after an ESRI report found that companies offering free bets led gamblers to spend more, lose more and push them into making bad decisions. 'Our findings imply that gambling offers aren't merely marketing tools, but pose a real risk of financial harm, particularly among vulnerable groups,' said Dr Diarmaid Ó Ceallaigh of the ESRI's Behavioural Research Unit. Read More No use crying over spilt stout: Taoiseach rallies after faux pas in Tokyo
