Gardaí to probe credit union ‘money-laundering’
A source at Gurranabraher Credit Union said yesterday that “a substantial amount of money had been moving in and out of the account,” and had been spotted by consultants Ernst & Young.
In a letter to be sent to the credit union’s 12,000 members, the board said that arising from the consultants’ examination, one member’s account had been referred to the Garda Money Laundering Unit at Harcourt Square, Dublin.
Meanwhile, in a separate inquiry, the Irish Financial Services Regulatory Authority has been asked by the gardaí to investigate how a loan for €127,000 was granted to another individual when that member had only slightly over €100 on deposit at Gurranabraher, and no history of saving.
A spokesman for Gurranabraher Credit Union said providing such a loan was a serious breach of the rules and regulations of the credit union and the question of whether the granting of the loan breached the Credit Union Act was under review.
The spokesman added it was the largest loan in the history of the credit union.
“The use of members’ monies to fund a loan of this magnitude to someone with no security and no savings history is a huge source of concern to the board and should be to very member of Gurranabraher Credit Union,” the spokesman said.
The board of Gurranabraher Credit Union moved yesterday to assure members that their affairs were being professionally run.
The spokesman said management structures had been put in place in the past year which were particularly focused on the security of members’ funds, on credit control, monitoring of loans, collection of debts and strict adherence to internal policies.
“The board is determined any monies outstanding to this credit union will be pursued as far as is practicable,” the spokesman added. The Ernst & Young examination is still ongoing and he said members would be kept up to date on its findings.
