Robert Troy (Longford-Westmeath, Fianna Fail)
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237. To ask the Minister for Finance if he will engage with the Central Bank to ensure that community groups are not inadvertently prevented from holding an account with credit unions (details supplied). [42696/24]

Jack Chambers (Dublin West, Fianna Fail)
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I thank the Deputy for his question.

Government policy is to support and enable credit unions provide a full suite of financial services to all members of society. The core ethos of credit unions is to serve all its members and its community. As you are aware, credit unions in Ireland are authorised and governed under the Credit Union Act, 1997 (as amended by the 2023 Credit Union Amendment Act) (the Act). The Central Bank of Ireland (Central Bank) are the authorised supervisor and regulator of the credit union sector, and has set out a framework for the registration, regulation and operation of credit unions.

Community groups are permitted to hold an account with a credit union, and from my understanding of the Deputy's question these accounts are also referred to as 'Savings Club Accounts'. The Central Bank has, in the Savings Chapter of its Credit Union Handbook, provided detailed guidance on the operation of these accounts.

The Central Bank expects credit unions to have operational procedures in place for such accounts in order to ensure compliance with all legislative and regulatory requirements including the Act, the Credit Union 1997 (Regulatory Requirements) Regulations 2016 and the Criminal Justice (Money Laundering and Terrorist Finance) Act 2010, as amended.

It is important to note, that it is an independent, commercial decision for the board of each credit union as to whom it decides to provide financial services to. This is based on a range of factors including; all relevant legal and regulatory requirements, business strategies and risk management policies of a particular credit union.

However, the Central Bank does expect that a credit union would give reasonable notice to affected members where it intends to amend or alter the range of services it provides, which in the details supplied to me, has taken place.

I trust this clarifies matters for the Deputy.