Drimnagh Credit Union fined for paying directors

Further risk-taking and regulation breaches at another Leinster branch...

Drimnagh Credit Union fined for paying directors

Irish league of Credit Unions in Dublin. Image: RollingNews.ie

Drimnagh Credit Union has been fined €125,000 by the Central Bank for illegally paying its directors and a number of other breaches of regulations.

These include a failure to implement adequate procedures to prevent and detect money laundering and in relation to payments and expenses claimed by the credit union’s officers.

The Central Bank found that, contrary to regulations, payments to directors and the credit union’s oversight committee totalling €16,000 were made between 2013 and 2015 for services provided.

Unnamed directors were paid to attend League of Credit Union meetings, as well as being paid expenses on the double.

Credit unions are forbidden from paying directors, with positions supposed to be filled by volunteers.

The credit union said in a statement:

"Drimnagh Credit Union can assure members that their savings and deposits are not affected in any way, and can continue to do business with the credit union in the usual way."

This is the third enforcement case which the Central Bank has taken since it was given full sanctioning powers in 2013.

Rush Credit Union was placed into liquidation last year following the discovery of a €4.7m hole in its reserves and allegations of financial mismanagement.

In December, Bray Credit Union was fined €98,000 due to "significant failings" in its anti-money laundering / countering of the financing of terrorism framework and procedures.

The regulator has been coming down hard on anti-money laundering compliance of late and recently announced it had fined Ulster Bank over €3m for ongoing similar breaches.