St. Canice's Kilkenny Credit Union Limited

Background St Canice’s is a regulated financial service provider and is registered as a credit union under the 1997 Act. The principal activity of the Credit Union is the provision of financial services to over 57,000 members. The breaches relate to the planning and implementation of a new IT system and the problems subsequently encountered in relation to the bank reconciliation process. The bank reconciliation issue persisted for 15 months and St Canice’s failed to report the matter to the Central Bank. The problems came to the Central Bank’s attention via a third party report on an unrelated matter. The quarterly prudential returns submitted by the Credit Union from September 2014 to September 2015 were inaccurate. PRESCRIBED CONTRAVENTIONS The Central Bank identified eight breaches of the 1997 Act, occurring between August 2014 and January 2016. Details of the provisions breached are set out below. Section 27A(1) of the 1997 Act requires a credit union to maintain oversight, policies, processes, systems, controls, skills, expertise and reporting arrangements appropriate to the nature, scale and complexity of its business. This is to ensure the protection of members’ savings and comply with requirements imposed under the financial services legislation. Sections 66A(1)(a) and 66A(2) of the 1997 Act requires a credit union to put in place governance arrangements suitable to the nature, scale and complexity of its business to ensure effective oversight of its activities and compliance with the 1997 Act.