AIB fined €490k over breaches of regulations
Published 20/12/2013 | 02:30
STATE-owned AIB has been fined almost half-a-million euro for breaching banking regulations.
The Central Bank said it had imposed a €490,000 fine on the nationalised bank and issued a formal reprimand for "contravention of the central bank's requirements for the management of liquidity risk".
The Central Bank, which also acts as financial regulator, said the fine was imposed for "inaccuracies in the regulatory liquidity returns" made by the bank.
The lapses are technical and the bank never failed to have enough liquidity -- cash and other easily realised assets -- to meet banking standards.
However, AIB failed to have "adequate internal controls" in place.
The failures occurred between September 2007 and May this year -- before and after the bank was bailed out by taxpayers at a cost of more than €20bn.
The problems were originally discovered, and reported, by AIB to the authorities.
The director of enforcement at the Central Bank, Derville Rowland, said this brings the total level of fines imposed by the Central Bank in 2013 to €6.35m.
Fines of €22.14m have been levied since 2010, when tough new rules were brought in after the disaster of the banking crash.
Meanwhile, around 90 AIB staff based on Adelaide Road in central Dublin look set to transfer to US technology firm BancTec from March 1, 2014, after the bank signed an agreement to outsource its cheque-clearing operations.
The outsourcing contract had been flagged since the summer, and is one of a number of similar deals thought to be under consideration.
AIB, bank workers' union the IBOA, and BankTec will now begin a round of talks on how the staff transfers will be done.
Under a deal hammered out last August at the Labour Relations Committee, the bank has agreed to consider staff transfers to other areas of the bank and consider offering redundancy terms if employees opt not to transfer across to the new operator.