Credit union fined €21k for rules breach

A credit union has been fined €21,000 over its failure to ensure it could prevent and detect money laundering and terrorist financing.

The Central Bank said it had imposed the penalty on the Dublin-based Community Credit Union Limited for breaching regulations.

Central Bank director of enforcement Peter Oakes said the penalty, imposed on the Navan Rd-headquartered union, follows inspections in all regulated sectors of the financial services industry to monitor compliance.

“Credit unions have an important role to play in the financial services sector, providing services to credit union members throughout the country, and savings under management of almost €12bn,” he said.

“They therefore play an integral part in efforts to prevent the use of the financial system for the purposes of money laundering and terrorist financing.”

He added: “Firms must also maintain awareness at board level of the need to continually review the appropriateness of their risk-based anti-money laundering and counter terrorist financing measures as business evolves.”

It is the first time an administrative sanction has been imposed on a credit union and only the second time a firm has been sanctioned for non-compliance with money laundering and terrorist financing laws which came into force in Jul 2010.

The breaches were alleged to have occurred from Jul 15, 2010, when the Criminal Justice Act came into force, until Nov 29, 2011. The credit union was inspected in Sept 2011.

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