Business Irish

Thursday 17 August 2017

BoI fined €3.1m over laundering 'failures'

Bank of Ireland has been fined €3.1m by the Central Bank. Photo: GETTY
Bank of Ireland has been fined €3.1m by the Central Bank. Photo: GETTY
Charlie Weston

Charlie Weston

A third major retail bank has been fined for failing to have proper systems in place to counteract money laundering.

Bank of Ireland has been fined €3.1m by the Central Bank.

It comes after similar multi-million euro penalties for Ulster Bank and AIB.

Bank of Ireland was reprimanded for 12 breaches of anti-money laundering and terrorist financing legislation.

What were called "significant failures" in controls, policies and procedures for dealing with suspicions of money laundering were identified by regulators.

The Richie Boucher-headed bank failed to report six suspicious transactions to gardaí, and it failed to assess risks to its business from money laundering and terrorist financing.

The fine is a huge embarrassment for the bank, which is one of the largest financial institutions in the State.

This is the third time a major retail bank has been fined in relation to the strict anti-money laundering rules.

Last month State-owned AIB was hit with a €2.27m Central Bank fine for failing to check if it was being used for money laundering and tax evasion.

The breaches are understood to have occurred mainly at EBS, which was taken over by AIB in July 2011, soon after the banks were bailed out.

Before Christmas, Ulster Bank was fined €3.3m for breaches of anti-money laundering and terrorist-financing regulations. And a number of credit unions have had fines imposed and have been reprimanded for failures under anti-money laundering legislation.

Irish Independent

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