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Regulators

Central Bank of Ireland imposes fine of €3,500,000 in respect of IT governance failures by Ulster Bank Ireland Limited 

13 Nov 2014 by OneStopBrokers
Ulster Bank

The Central Bank of Ireland (the “Central Bank”) has fined Ulster Bank Ireland Limited (the “Firm”) €3,500,000 and reprimanded it in relation to IT and governance failings by the Firm that resulted in approximately 600,000 customers being deprived of essential and basic banking services over a 28 day period during June and July 2012. The fine and reprimand are in addition to a redress scheme required and overseen by the Central Bank under which the Firm has paid approximately €59 million to affected customers.

The Central Bank found that the Firm failed to have robust governance arrangements in relation to its IT systems and controls and that, as a result, a major and prolonged IT failure occurred. Alongside causing widespread and significant loss and inconvenience to customers, the IT failure also threatened confidence in the operation of the retail banking sector as it effectively prevented the Firm from participating in the process used to settle payments among banks (“clearing”). These findings have been accepted by the Firm as part of the settlement agreement between the Central Bank and the Firm.

 

Source: CentralbankofIreland-Central Bank of Ireland imposes fine of €3,500,000 in respect of IT governance failures by Ulster Bank Ireland Limited

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