Failure to comply with obligations under the CJA 2010 may attract both criminal and civil sanctions.
A person who fails to comply with any of their obligations commits a criminal offence and may be liable: (a) on summary conviction, to a fine of up to €5,000 and/or imprisonment for up to 12 months; (b) on conviction on indictment, to an (unlimited) fine and/or imprisonment for up to 5 years.
Directors, managers, secretaries and other officers, and members of the committee of management or other controlling authorities of designated bodies, as well as persons purporting to act in any of these capacities, may be liable where they have consented to or connived in the offence, or where the offence is attributable to their wilful neglect. The offence is an “arrestable offence”, enabling members of the Garda Síochána to arrest a suspect without court warrant for questioning. Directors will also be disqualified where convicted.
Credit unions and the persons concerned in their management who fail to take the preventive measures required by the CJA 2010 may also be subject to the CBI’s Administrative Sanctions Procedure and may be subject to a range of sanctions such as: (a) a caution or reprimand; (b) a monetary penalty; and/or (c) restrictions or directions. Late last year a credit union was the subject of such a sanction.
On 13 December 2012, the Central Bank entered into a settlement agreement with Community Credit Union Limited regarding breaches of the CJA 2010. The Central Bank reprimanded the credit union and it was required to pay a fine of €21,000. This was Central Bank’s first administrative sanction against a credit union and its second against a firm for non-compliance with AML and CTF laws. The action arose from an inspection and subsequent examination by the Central Bank.