Central Bank fines of €100,000-plus on the rise

The number of fines over €100,000 imposed on financial institutions by the Central Bank since the start of the financial crisis has increased sharply in the last three years.

According to figures provided in a written Dáil reply, Minister for Finance Michael Noonan confirmed that fines over €100,000 have been imposed on six separate financial institutions this year totalling €5.2m. The highest fine this year was the €3.5m recently imposed on Ulster Bank.

The figures show that only one fine of over €100,000 was imposed in the last three months of 2008 with a total of five fines over €100,000 imposed in 2009 and 2010.

According to the figures provided, 2012 was the year that recorded the highest number of fines with €8.2m collected from seven separate financial institutions.

This compared to just €2.1m in 2009 and €3.6m in 2010 relating to fines of over €100,000.

The highest fine during the six-year period was the €5m fine imposed on Quinn Insurance Ltd in December 2013.

Fianna Fáil finance spokesman Michael McGrath, who tabled the question, said: “The fines imposed show that the financial institutions are under no illusions of the extensive powers the Central Bank has at its disposal and the number of fines recently imposed is evidence of a strong deterrent in place.”

A spokeswoman for the Central Bank said yesterday that it would make full use of its powers, including increased powers to fine financial institutions, to effect deterrence, improve compliance and promote high standards.