The Central Bank has imposed a fine of €650,000 on Bank of Montreal Ireland for breaking a number of regulations. Under a settlement agreement with the IFSC-based bank, the Central Bank has also extended a reprimand.

In a statement issued this morning, the Central Bank said Bank of Montreal Ireland had been responsible for three regulatory contraventions which occurred at various points in the five-year period from March 2008.

The contraventions related to rules on the level of financial exposure to a particular person or entity, to the calculation of the firm’s exposure to risks and to having effective processes and adequate internal controls to ensure compliance with particular regulations.

The Central Bank said the penalties imposed in the case reflected the importance it attaches to compliance with regulatory reporting obligations and to ensuring adherence to rules on large exposure limits. It noted that Bank of Montreal co-operated with the investigation and settled at an early stage.

Derville Rowland, director of enforcement with the Central bank said the authority would remain vigilant.

“Where the Central Bank finds evidence of failures in the areas of regulatory reporting or compliance with regulatory limits, the Central Bank will continue to use its range of regulatory tools, including enforcement,” she said.