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AIB fined for breaches of money laundering and anti-terrorist regulations

Staff Writer |
State-owned Irish AIB bank has been slapped with a €2.3m fine after it admitted breaching laws drawn up to thwart terrorists and criminals.

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Banking watchdogs said the bailed-out lender was guilty of "significant failures" in its responsibilities to prevent money laundering and the financing of terror organisations.

It was found to have breached the Criminal Justice (Money Laundering & Terrorist Financing) Act on six different counts over a period of more than three years.

All six breaches have been admitted by AIB. An investigation by the Central Bank, which oversees lenders, found that AIB failed to immediately report suspicious transactions to the Garda and the Revenue Commissioners.

It also failed to investigate customers who had accounts before May 1995, when the first Irish laws on anti-money laundering and terror financing came into effect.

The Central Bank said it identified more breaches by AIB in a number of other policies and procedures.

It handed down a fine of €2,275,000 for the failures.


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