Governance and
Stewardship of
Credit Unions
At the end of this unit,
students will be able to:
Understand
Explain
structured
the term “governance”
how
credit
unions
are
Explain
how meetings are held and how
members are elected
Demonstrate
their understanding by
holding a meeting and electing officers
Credit Unions are financial cooperatives 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 cooperatives 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
MEMBERS
SUPERVISORY
COMMITTEE
CREDIT
COMMITTEE
BOARD OF
DIRECTORS
EDUCATION
COMMITTEE
CREDIT
CONTROL
COMMITTEE
AUDITOR
MEMBERSHIP
COMMITTEE
PLANNING AND
DEVELOPMENT
COMMITTEE
NOMINATING
COMMITTEE
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