Bank of Ireland fined €24.5m for business continuity failures

Bank of Ireland fined €24.5m for business continuity failures

Bank of Ireland struck multi-million euro fine by reserve bank following examination

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Released: 03 Dec 2021 12: 45

The Bank of Ireland has actually been struck by a multi-million euro fine by Ireland’s reserve bank after an examination discovered it has actually not had a system in location that might make sure customer care in case of an IT failure.

The examination by the Reserve bank of Ireland was initiated by the European Reserve Bank

The Bank of Ireland, which has 169 branches and more than 2 million consumers, was fined EUR35 m, which was lowered to EUR245 m as part of a settlement discount rate plan. It is the second-highest fine the reserve bank has actually ever given out.

According to the Reserve Bank of Ireland, the bank was fined and reprimanded “for failures to have a robust structure in location to make sure connection of service for the Company and its clients in case of a substantial IT interruption”.

It included: “These shortages were consistently recognized from 2008 onwards, however due to internal control failings, just began to be properly acknowledged and resolved in2015 The actions taken by the Company to resolve the shortages were finished by 2019.”

” From 2008 up until 2019, BOI remained in breach of essential regulative arrangements concerning IT service connection, emerging from shortages that were consistently recognized in between 2008 and 2015 in third-party reports. Actions to resolve these shortages just started in 2015,” stated Seána Cunningham, director of enforcement and anti-money laundering at the Central Bank of Ireland.

” The effect of these breaches implied that had a serious disturbance occasion happened, BOI might not have actually had the ability to guarantee connection of crucial services, such as payment services. Had BOI’s important services been interrupted, this might have resulted in negative results on clients and the monetary system.”

According to the reserve bank, the Bank of Ireland confessed to the failures, consisting of: to show a capability to make sure connection of service in case of substantial IT interruption; to have reliable internal controls to determine shortages in the IT; and to correctly engage and manage the management of third-party IT provider.

With customers significantly dependent on digital banking services, regulators require warranties from banks that the best procedures and policies remain in location to make sure customers can access banking services in case of IT failures

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