NIB training staff to spot money laundering
Staff in National Irish Bank are being trained to spot money laundering activity at branches, it emerged today.
Bosses from the troubled bank appeared before the Oireachtas Finance Committee to give a progress report on a radical reform of its systems and procedures since a damning High Court report last year.
Two inspectors found widespread corrupt practices including illegal overcharging and tax evasion at the financial institution, bought by Denmark’s Danske Bank earlier this year.
NIB chief executive John Trethowan today told Committee members that the bank had paid a huge price for the scandal but was now fully compliant with all financial regulations.
He added: “Anti-money laundering training is provided to all staff. Every branch has a tax compliant supervisor and an officer in charge of reviewing account opening.”
NIB is a sister bank of Northern Bank in Northern Ireland – both owned by National Australia Bank.
Mr Trethowan said: “We have paid a huge price for our past failings,” which he estimated at 70m euro.
He also pointed out that the bank’s troubles prevented growth during the 1990s boom that many of its competitors enjoyed.
“I can assure the committee that we are fully committed to compliance. A team of compliance managers regularly visit all branches to monitor compliance with procedures.”
The High Court’s six-year probe – published last summer – also found NIB staff invested undeclared customer cash in an offshore tax evasion scheme.
The report also discovered that bogus non-resident accounts were opened and maintained by NIB across its branch network.
