Central Bank of Ireland Enforcement Action: Allied Irish Banks

The fine was 2,275,000 EUR for the following AML failures – AIB failed to:

 

  •   Report suspicious transactions without delay to An Garda Síochána and the Revenue Commissioners.

  •   Conduct customer due diligence (‘CDD’) on existing customers who had accounts prior to May 1995 (‘Pre95 customers’) when the first Irish laws on anti-money laundering and countering the financing of terrorism (‘AML/CFT’) became effective

 

  1. The Central Bank also identified breaches in respect of AIB’s AML/CFT policies and procedures in a number of areas, including the above, and its trade finance business. 

And these are the factors that the central bank used in setting the penalty:

 

  •   Seriousness with which the conduct is viewed, particularly given AIB’s central role in the financial services system and the high risk nature of retail banking business in terms of ML/TF.

  •   The extended period of time over which the breaches occurred, spanning the period from 15 July 2010 to 8 July 2014.

  •   The co-operation of AIB during the investigation and in settling at an early stage in the Central Bank’s Administrative Sanctions Procedure.

  •   The actions taken by AIB to remediate the breaches. 

Link:

Central Bank of Ireland Settlement Agreement

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