Governance and Stewardship of Credit Unions

At the end of this unit, students will be able to: Understand the term “governance” Explain how credit unions are structured Explain how meetings are held and how members are elected Demonstrate their understanding by holding a meeting and electing officers

Credit Unions are financial co-operatives which exist under the following principles: Open and voluntary membership Democratic control Dividend on equity capital Return on savings and deposits

Credit Unions are financial co-operatives which exist under the following principles: Return of surplus to members Service to members On-going education Co-operation among co-operatives Social responsibility

Organisation Structure of Credit Union

Anti Money Laundering Requirements (Criminal Justice Act) This means that Credit Unions are obliged, when providing their Credit Union services, to: Identify members and retain certain records Report to the Garda Síochána (Irish police force) and Irish Revenue Commissioners any suspicion that a money laundering or financing of terrorism offence has been or is being committed in relation to their business

Anti Money Laundering Requirements (Criminal Justice Act) As designated bodies Credit Unions must: Maintain adequate records of transactions to allow the Financial Regulator to monitor compliance Establish and document adequate and appropriate policies procedures to assist staff to identify money laundering activity Establish clear reporting procedures to assist staff and management to comply with the reporting obligations set out in

Governance is the system by which Credit Unions are directed and controlled: The governance structure distributes the rights and responsibilities among different participants i.e. directors, supervisors The members of the Credit Union elect the Board of Directors at the AGM. The Board is responsible for control, direction and management of affairs, funds, records of the credit union. Only credit union members are eligible for election *additional information on meetings and task

The following applies to all Credit Unions: Governed by a voluntary Board of Directors who are elected by its members at the AGM The Board are responsible for ensuring proper operation and protection of member funds

The following applies to all Credit Unions (continued) : CUs are regulated by Registrar of Credit Unions who reports to the Financial Regulator as part of the Central Bank of Ireland. In Northern Ireland , credit unions are also regulated by a Registrar who is part of the FSA. The Registry of Credit Unions monitor all finances and to protect members funds The Irish League of Credit Unions oversees the running of Credit Unions