Latest news with #SwillyMulroy
Irish Times
02-07-2025
- Business
- Irish Times
Donegal credit union fined for breaching money laundering laws
Donegal based credit union Swilly Mulroy has been fined by the Central Bank after breaching money laundering laws. The credit union was issued with a fine of €36,273 for breaching requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (the 2010 Act) and the Credit Union Act 1997 (the 1997 Act). The 2010 Act requires firms to put in place safeguards against the risk of money laundering, while the 1997 Act requires credit unions to develop and implement risk management systems to monitor and manage risks. 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. READ MORE '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. 'As a result, Swilly Mulroy 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 investigation found that Swilly Mulroy operated in this way between January 2nd, 2014, and June 30th, 2021, during which time it processed €8,751,694 in deposits from 2,329 cash lodgements. The regulator 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. The issue was not brought to the Central Bank's attention but was discovered in 2022 during an inspection by the Central Bank's anti-money laundering division. The Central Bank commenced the 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 therefore breached multiple requirements of the 2010 Act,' the Central Bank said.' Swilly Mulroy has admitted the breaches and has agreed to the facts as set out by the Central Bank. As part of the settlement agreement reached between the Central Bank and Swilly Mulroy, it was determined that sanctions comprising a reprimand and monetary penalty in the amount of €51,819 was 'both warranted and proportionate to the size of the firm'. However, the application of a 30 per cent settlement scheme brought the amount down to €36,273. The sanctions have been accepted by Swilly Mulroy, although they are subject to confirmation by the High Court. The credit union was contacted for comment.
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
