Swilly Mulroy Credit Union, located in Co Donegal, has been fined €36,273 for violations of anti-money laundering regulations.
The Central Bank of Ireland imposed the penalty on Swilly Mulroy Credit Union for non-compliance with the Criminal Justice (Money Laundering and Terrorist Financing) Act and the Credit Union Act 1997.
The 2010 Act mandates that financial institutions implement safeguards against money laundering risks. The 1997 Act requires credit unions to establish and maintain risk management systems to monitor and manage potential risks.
The Central Bank’s investigation revealed that Swilly Mulroy Credit Union had a practice of receiving cash deposits from individuals who were not account holders.
These funds were then electronically transferred to a local bank branch, bypassing the standard procedure of depositing the money into an account under the customer’s name at Swilly Mulroy first.
Consequently, Swilly Mulroy failed to perform the required Anti-Money Laundering (AML) checks on the depositors and the transactions. This specific practice, involving significant cash handling, had been previously identified as carrying a heightened money laundering risk for the credit union sector.
The investigation determined that Swilly Mulroy engaged in this practice from January 2, 2014, to June 30, 2021, processing €8,751,694 in deposits through 2,329 cash lodgements.
The Swilly Mulroy Board was aware of the risks associated with this practice as early as 2015 but did not fulfill its risk management obligations under the 1997 Act. A new management team halted the practice in 2021 and subsequently notified the Board.
The issue was not reported to the Central Bank. It was discovered in 2022 during an inspection by the Central Bank’s Anti-Money Laundering Division, leading to the commencement of this enforcement investigation in 2023.
The investigation uncovered numerous instances of cash deposits that should have prompted increased scrutiny but were instead processed without necessary Anti-Money Laundering controls.
Therefore, Swilly Mulroy breached several requirements of the 2010 Act.
Swilly Mulroy has admitted to the violations and agreed to the facts outlined in the Settlement Notice.
Under the settlement agreement between the Central Bank and Swilly Mulroy, the Central Bank initially determined that a reprimand and a monetary penalty of €51,819 were appropriate and proportionate.
The application of a 30% settlement discount reduced the penalty to €36,273. Swilly Mulroy has accepted the sanctions, which are pending confirmation by the High Court and will only take effect if confirmed.
Colm Kincaid, Director of Enforcement at the Central Bank, stated, “Anti-money laundering and counter-terrorist financing legislation is in place to prevent the financial system from being used to launder criminal proceeds or finance terrorist activities. A crucial safeguard is that regulated financial service providers establish controls to identify customers and detect potential money laundering or terrorist financing.”
“When firms allow gaps in their control framework, they create opportunities for criminals and terrorists to exploit our financial system. Crucially, when firms identify control gaps, they must report them to the Central Bank, enabling appropriate action to manage and mitigate the risk.”
“This action underscores the Central Bank’s ongoing commitment to ensuring firms comply with their legal obligations to protect the integrity of our financial system.”
Donegal credit union fined €36,000 over anti money-laundering breaches was last modified: July 2nd, 2025 by
