Central Bank finds deficiencies in credit unions

Credit unions are not complying with money laundering legislation introduced almost five years ago, according to a Central Bank report.

The report states that the Central Bank identified widespread deficiencies among credit unions in complying with the Criminal Justice Act, 2010, which introduced a range of safeguards against money laundering.

These included accepting large cash lodgements from local businesses or to members’ accounts without documenting any risks, proper due diligence or monitoring.

Similarly, many did not have proper procedures to identify and verify account owners, particularly in the case of businesses and, clubs and societies.

The Central Bank notes that credit unions will be required to confirm annually that they have put appropriate measures in place to address the problems outlined in its report.