High Court Upholds €36,273 Fine Against Donegal Credit Union

The High Court has upheld a fine imposed on the Swilly Mulroy Credit Union in County Donegal for violations of anti-money laundering regulations. On Monday, Mr Justice David Barniville confirmed the penalty of over €36,000 following the credit union’s admission of breaches that occurred between January 2, 2014, and June 30, 2021.

During an inspection by the Central Bank of Ireland in 2022, it was revealed that Swilly Mulroy Credit Union had engaged in practices that circumvented essential anti-money laundering checks. The investigation found that the credit union solicited and accepted cash deposits from individuals, many of whom did not hold accounts with them. This cash was then electronically transferred to a local bank branch without being deposited into an account in the depositor’s name at Swilly Mulroy.

As a result of these actions, the credit union failed to conduct necessary due diligence on the depositors and their transactions. The Central Bank reported that from the start of 2014 to mid-2021, Swilly Mulroy processed a total of €8,751,694 from 2,329 cash lodgements.

In light of these findings, the High Court mandated that the credit union must pay the fine of €36,273 within seven days. Following the investigation, a new management team took over the operations of Swilly Mulroy in 2021 and discontinued the problematic practices that led to the breaches.

The ruling from the High Court emphasizes the importance of compliance with anti-money laundering legislation, which is crucial in maintaining the integrity of financial institutions. The case serves as a reminder of the ongoing oversight by regulatory bodies like the Central Bank to ensure adherence to financial regulations.