Bill plans stronger credit unions

Credit union chiefs who fail to adhere to proposed new legislation run the risk of heavy fines of up to €250,000 and multi-year prison sentences.

Finance Minister Michael Noonan last night published the general scheme of the Credit Union Bill, the first step towards legislation aimed at introducing major changes to the sector.

Much of the bill, which will be referred to the Attorney General’s Office for formal drafting, before being referred to both the European Central Bank and the Joint Oireachtas Finance Committee for opinion, gives effect to recommendations included in the report of the Commission on Credit Unions, published in April.