ABERDEEN, Ireland—Ireland’s FCA is investigating a credit union here over whether an employee’s personal account was used to speed up payments for members. According to investigators, St. Machar CU set up personal accounts with six banks in the name of the employee and then used those accounts to speed payments to members from 2009-14.
The FCA said St. Macher CU failed to consider the risks associated with this arrangement, including the loss of control and/or legal rights to monies once the funds had been transferred to the personal accounts. The accounts violated the FCA’s Principles of Business, and the FCA has required the credit union to publish a statement to that effect on its website for six weeks.
According to the FCA, St. Macher CU has said it will no longer use personal bank accounts to facilitate its business.