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Irish Independent
02-07-2025
- Business
- Irish Independent
Donegal credit union fined for taking cash from people who were not its members
Swilly Mulroy Credit Union, of Bridgetown, was fined €36,000 after the regulator found it operated a practice of soliciting and accepting cash from depositors who did not hold accounts with the credit union. 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.
RTÉ News
02-07-2025
- Business
- RTÉ News
Central Bank fines Co Donegal credit union for anti-money laundering breaches
The Central Bank has fined a Co Donegal credit union a total of €36,273 for breaching anti-money laundering requirements as well as the Credit Union Act of 1997. The Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 requires firms to put in place safeguards against the risk of money laundering and the 1997 Act requires credit unions to develop and implement risk management systems to monitor and manage risks. The Central Bank said its investigation found that Swilly Mulroy Credit Union 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 said that as a result, Swilly Mulroy failed to conduct the necessary anti-money laundering checks on the depositors and the transactions. The probe found that Swilly Mulroy operated in this way between 2 January 2014 and 30 June 2021, during which time it processed €8,751,694 in deposits from 2,329 cash lodgements. The Central Bank 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. But the issue was not brought to the Central Bank's attention and was discovered in 2022 during an inspection by the bank's Anti-Money Laundering Division. Swilly Mulroy has admitted the breaches. As part of the settlement dealt, the Central Bank said it had determined that sanctions comprising a reprimand and monetary penalty in the amount of €51,819 were both warranted and proportionate to the size of the firm. The application of a 30% settlement scheme brings the amount to €36,273. The sanctions have been accepted by Swilly Mulroy and are subject to confirmation by the High Court. They will not take effect unless confirmed. This is the Central Bank's 160th enforcement outcome to date, and brings the total fines imposed by it to over €407m. Colm Kincaid, the Central Bank's Director of Enforcement, said that anti-money laundering and counter terrorist financing legislation is designed to prevent the financial system being used to launder the proceeds of crime or fund terrorist activities. "One of its key safeguards is that regulated financial service providers have controls in place to identify their customers and detect potential money laundering or terrorist financing." he 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. It is also important that, when firms identify that such control gaps exist, they must report it to the Central Bank, so that appropriate actions can be taken to manage and mitigate the risk," he added. He said today's action demonstrates the Central Bank's continued focus on firms' compliance with their legal obligations to safeguard the integrity of the country's financial system.
Irish Examiner
02-07-2025
- Business
- Irish Examiner
Central Bank fines credit union for breaches of anti-money laundering requirements
The Central Bank of Ireland has fined Donegal-based Swilly Mulroy Credit Union just over €36,000 for breaches of anti-money laundering requirements over a seven-year period. Under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, firms are required to put in place safeguards against the risk of money laundering. The Credit Union Act 1997 also requires credit unions to develop and implement risk-management systems to monitor and manage risks. An investigation by the Central Bank found Swilly Mulroy operated a practice of soliciting and accepting cash from depositors who did not hold accounts with the credit union. The bank said 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. This means the credit union failed to conduct the necessary anti-money-laundering checks on the depositors and the transactions. 'This specific cash-intensive practice had been flagged to the credit union sector as presenting a heightened money-laundering risk,' the Central Bank said. The investigation found Swilly Mulroy operated this practice between January 2, 2014, and June 30, 2021, during which time it processed €8,751,694 in deposits from 2,329 cash lodgements. '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,' the Central Bank said. While the practice ceased in 2021, the issue was not brought to the attention of the Central Bank and was instead discovered in 2022 during an inspection by the bank's anti-money-laundering division. 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,' the Central Bank said. The credit union admitted to the prescribed contraventions and agreed to the undisputed facts as set out in the attached settlement notice. As part of the settlement, Swilly Mulroy Credit Union received a reprimand and monetary penalty in the amount of €51,819, proportionate to the size of the firm. However, a discount of 30% on the fine was applied as a result of the credit union agreeing to the settlement, bringing the final fine to €36,273. The sanctions are subject to confirmation by the High Court and will not take effect unless confirmed. Central Bank director of enforcement Colm Kincaid said anti-money-laundering and counter terrorist financing legislation was 'designed to prevent the financial system being used to launder the proceeds of crime or fund terrorist activities'. 'One of its key safeguards is that regulated financial service providers have controls in place to identify their customers and detect potential money laundering or terrorist financing.' This is the Central Bank's 160th enforcement outcome to date, bringing the total fines imposed by the Central Bank to more than €407m. Read More Two people allegedly involved in surveillance of 'spy' case man are named in court case
Irish Independent
21-05-2025
- Business
- Irish Independent
INBS inquiry ends with fourth executive fined and reprimanded
Home > Business > Irish Business Cost of decade long independent inquiry into bust lender tops €24m Colm Kincaid, Director of Enforcement at the Central Bank of Ireland The case, which dates back to the collapse of the lender in 2009, is the first where a person who was the subject of such an inquiry has had a determination against them having refused to agree a settlement. The Central Bank must now apply to the High Court to confirm the Inquiry Decision. The time for a possible appeal has expired. The Director of Enforcement at the Central Bank, Colm Kincaid, said the Inquiry's decision was 'a significant milestone' in addressing the fallout from the banking crisis of the late 2000s. The to the Central Bank of €24m includes its initial investigation into the collapse of Inbs, the setting up and running of an Independent Inquiry and the costs associated with a defending a number of legal actions that in effect challenged the right of the regulator to pursue its cases against individual former bankers. The outcome was 'absolutely worth it,' Colm Kincaid said. The demonstration of the credible threat that regulators will pursue action is important to ensuring compliance across the finance industry. he said. The Independent Inquiry was established in 2015 to examine the roles of INBS and four of its senior figures: Michael Fingleton, William Garfield McCollum, Tom McMenamin, John Stanley Purcell and Michael P. Walsh in the collapse of the former lender at a cost of €5.4bn that was borne by taxpayers. INBS itself and three of the individual subjects of the inquiry agreed settlements with the Inquiry – including accepting individual fines of up to €200,000 and disqualifications of up to 18 years. In 2019 the Inquiry permanently 'stayed' the case into Michael Fingleton, who'd been the managing director and major player at Inbs, citing his poor health. The Cejtral bank has confirmed that the 2019 stay effectively ends any actions by the regulator in relation to Mr Fingelton, one of the best known and most controversial figures in the era of the banking boom and subsequent bust. Commenting on the final decision of the Inquiry, the Governor of the Central Bank of Ireland Gabriel Makhlouf said it concludes an important enforcement action taken by the Central Bank in the public interest. "It is critical to public trust and confidence in financial services that there is a credible threat of such enforcement for firms and individuals who break the rules put in place to protect consumers and the stability of the financial system,' he said. 'The sanctions imposed by the Inquiry and through the settlements with INBS and the other individuals highlight the important position of senior role holders and board members in the financial industry. The Inquiry Decision shows the very serious impact failures at board level can have and provides valuable lessons to senior role holders in the financial services industry. It is essential that such key role holders take responsibility for and drive effective risk management and strong governance,' he said. Join the Irish Independent WhatsApp channel Stay up to date with all the latest news
