A senior official at AIB Bank's headquarters in Ballsbridge in Dublin has gone on paid leave ahead of an independent inquiry into the bank's overcharging of its foreign exchange customers, it has been reported this evening.
The news comes as it was revealed that the amount AIB overcharged non-cash foreign exchange customers could have been underestimated by €11 million.
Announcing an independent investigation into the overcharging, the bank indicated the figure should "should not exceed €25 million" a figure is consioderably higher than the €14 million first mooted.
AIB chairman Mr Dermot Gleeson said the investigation will be directed by a person of "undoubted independence" who will provide assurance to the board of AIB and to the Irish Financial Services Regulatory Authority (IFSRA) of the completeness and independence of the investigation.
Mr Gleeson said the investigator would be named within a week and will have access to external independent audit expertise in carrying out the investigation. The full investigation will be completed by mid-June.
AIB estimates its records should enable it by itself to identify, contact and reimburse at least two-thirds of the customers involved and deal with over 80 per cent of the amount to be reimbursed.
As previously stated, AIB will not benefit from any overcharges levied on customers who cannot be identified.
As the restitution process cannot begin until August because systems have to be developed, AIB said today it is placing a "good faith deposit" of €25 million with the Central Bank.
IFSRA is carrying out a separate investigation. Its chief executive, Mr Liam O'Reilly, today said the investigation was making good progress and that "significant progress" was being made in identifying the customers affected by the overcharging which occurred over an eight-year period.
"Our priority at this stage is to identify how recompense can be made and to firmly clarify the total amount involved," Mr O'Reilly said.