Central Bank Act 1971

Number 24 of 1971

CENTRAL BANK ACT 1971

REVISED

Updated to 1 January 2025

This Revised Act is an administrative consolidation of the Central Bank Act 1971. It is prepared by the Law Reform Commission in accordance with its function under the Law Reform Commission Act 1975 (3/1975) to keep the law under review and to undertake revision and consolidation of statute law.

All Acts up to and including Family Courts Act 2024 (48/2024), enacted 13 November 2024, and all statutory instruments up to and including Physiotherapists Registration Board Application for Registration Bye-Law 2025 (S.I. No. 2 of 2025), made 7 January 2025, were considered in the preparation of this Revised Act.

Disclaimer: While every care has been taken in the preparation of this Revised Act, the Law Reform Commission can assume no responsibility for and give no guarantees, undertakings or warranties concerning the accuracy, completeness or up to date nature of the information provided and does not accept any liability whatsoever arising from any errors or omissions. Please notify any errors, omissions and comments by email to

revisedacts@lawreform.ie.

Number 24 of 1971

CENTRAL BANK ACT 1971

REVISED

Updated to 1 January 2025

ARRANGEMENT OF SECTIONS

Part I

Preliminary and General

Section
1.	Short title, collective citation, construction and commencement.
2.	Definitions.
3.	Expenses.
4.	Laying of orders and regulations before Houses of the Oireachtas.
5.	Repeals.
6.	Transitional provision.

Part II

Licensing and Supervision of Banks

7.	Restriction on carrying on of banking business.
8.	Exemption of persons from section 7.
9.	Grant of licences.
9A.	Authorisation of third country branches.
9B.	Refusal to grant an authorisation under section 9A.
9C.	Revocation of authorisations granted under section 9A.
9CA.	Third country branch reporting.
9CB.	Cooperation with competent authorities.
9D.	Programme of operations and structural organisation.
9E.	Initial capital.
9F.	Effective direction of business and place of head office.
9FA.	Precondition for draft decision to propose licence.
9G.	Shareholders and members.
9GA.	Assessment of suitability of shareholders or members.
9H.	Waiver for credit institutions permanently affiliated to central body.
9I.	Refusal of authorisation.
9J.	Prior consultation of competent authorities.
10.	Conditions of licences.
11.	Revocation of licences.
12.	Publication of names of holders of licences and notices of revocation of licences.
13.	Deposits at Bank for purposes of licences.
14.	Restriction on use of certain words.
15.	Provisions in relation to incorporation or banking companies.
16.	Provisions in relation to registration or change of business name.
17.	Provisions in relation to books and records of holders of licences.
17A.	Powers of authorised persons with respect to holders of licences. (Repealed)
18.	Holders of licences and others to provide Bank with required information and returns.
19.	Publication of business statements by holders of licences.
20.	Displaying of financial statements by holders of licences.
21.	Directions by Bank to holders of licences.
22.	Directions by Bank in relation to advertisements of holders of licences.
23.	Regulation of ratios between assets and liabilities of holders of licences.
23A.	Composition of assets and liabilities.
24.	Power of Bank to require deposits by holders of licences in certain circumstances.
25.	Power of Bank in respect of clearances of holders of licences.
26.	Collection of cheques, etc., drawn on holders of licences.
27.	Restriction on advertising for deposits.
28.	Provisions in relation to judgements against holders of licences.
28A.	Power of Court to prohibit certain contraventions of, or failure to comply with, Act of 1971.
29.	Proceedings in relation to deposits under section 7. (Repealed)
30.	Provisions in relation to bankruptcy and winding up. (Repealed)
31.	Duties of holder of licence on termination of banking business.
31A.	Interpretations/Definitions (Class 1 firms).
31B.	Requirement for a Class 1 authorisation (Class 1 firms).
31C.	Application for authorisation (Class 1 firms).
31D.	Programme of operations and structural organisation (Class 1 firms).
31E.	Initial Capital (Class 1 firms).
31F.	Effective direction of business and place of head office (Class 1 firms).
31FA.	Precondition for draft decision to propose Class 1 authorisation
31G.	Shareholders and members (Class 1 firms).
31H.	Assessment of suitability of shareholders and members (Class 1 firms).
31I.	Waiver for credit institutions permanently affiliated to central body (Class 1 firms).
31J.	Refusal of authorisation (Class 1 firms).
31K.	Prior consultation of competent authorities (Class 1 firms).
31L.	Conditions of authorisation (Class 1 firms).
31M.	Revocation of authorisation (Class 1 firms).
31N.	Publication of names of holders of authorisations and notices of revocation of authorisations (Class 1 firms).
31O.	Holders of Class 1 authorisations to keep certain records.
31P.	Holders of Class 1 authorisations and others to provide Bank with required information and returns.
31Q.	Publication of business statements by holders of Class 1 authorisations.
31R.	Requirement for holders of MiFID authorisation to re-authorise.

Part III

Transfers of Banks

32.	Interpretation (Part III).
33.	Approval by Minister of transfer of bank.
33A.	Effect of order under section 33(1) on certain other rights.
33B.	Minister’s power to modify application of section 33A.
34.	Transfer of accounts.
34A.	Transfer of property.
35.	Transfer of securities.
36.	Rights and obligations in relation to transferred securities.
37.	Transfer in the case of property held on bailment.
38.	Transfer of officers, clerks and servants.
39.	Application of certain instruments.
40.	Application of Bankers' Books Evidence Act, 1879.
41.	Continuance of pending legal proceedings.
42.	Exemptions from stamp duty.

Part IV

Currency

43.	Standard of value. (Repealed)
44.	Issue of legal tender notes by Bank.
45.	Amendment of section 49 of Act of 1927.
46.	Amendment of section 50 of Act of 1927 and of section 5 of the Currency (Amendment) Act, 1930.

Part V

Miscellaneous

47.	Additional powers and functions of Bank. (Repealed)
48.	Central Bank Reserve Bonds.
49.	Transfer of Exchequer Account to Bank.
50.	Transfer of land bond registers to Bank.
51.	Provisions relating to Bank of Ireland.
52.	Amendment of Moneylenders Acts, 1900 and 1933.
53.	Directors of Bank. (Repealed)
54.	Superannuation.
55.	Return of deposits under Act of 1942.
56.	Amendment of Bankers' Books Evidence Act, 1879.
57.	Amendment of section 14 of Decimal Currency Act 1970.
58.	Offences and punishments.
59.	Prosecution of offences by Bank.
60.	Offences in relation to certain bodies.

Schedule

Enactments Repealed

Acts Referred to
Currency Act, 1927	1927, No. 32
Central Bank Act, 1942	1942, No. 22
Companies Act, 1963	1963, No. 33
Registration of Business Names Act, 1963	1963, No. 30
Bills of Exchange Act, 1882	1882, c. 61
Registration of Deeds Act, 1707	6 Anne, c. 2 (Ir.)
Registration of Title Act, 1964	1964, No. 16
Bankers' Books Evidence Act, 1879	1879, c. 11
Finance Act, 1895	1895, c. 16
Currency (Amendment) Act, 1930	1930, No. 30
Exchequer and Audit Departments Act, 1866	1866. c. 39
Bank of Ireland Act, 1929	1929, No. 4 (Private)
Moneylenders Act, 1900	1900, c 51
Central Bank Act, 1961	1961, No. 8
Bankers' Books Evidence (Amendment) Act, 1959	1959, No. 21
Decimal Currency Act, 1970	1970, No. 21

Number 24 of 1971

CENTRAL BANK ACT 1971

REVISED

Updated to 1 January 2025

AN ACT TO MAKE FURTHER PROVISION IN RELATION TO BANKS AND BANKING, INCLUDING PROVISION FOR THE LICENSING AND SUPERVISION OF BANKS BY THE CENTRAL BANK OF IRELAND, TO AMEND AND EXTEND THE CURRENCY AND CENTRAL BANK ACTS, 1927 TO 1964, AND TO PROVIDE FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [28th July, 1971]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

Annotations

Modifications (not altering text):

Sanctions for breaches under Act prescribed (31.03.2014) by European Union (Capital Requirements) Regulations 2014 (S.I. No. 158 of 2014), reg. 54(1), (2)(a), (b).

Administrative penalties and other administrative measures for breaches of authorisation requirements and requirements for acquisitions of qualifying holdings

54.—(1) Notwithstanding Part IIIC of the Act of 1942 and the sanctions set out in section 33AQ of the Act of 1942, sanctions may be imposed by the Bank following an inquiry under section 33AO of the Act of 1942 for the contraventions listed in paragraph (2) and may include any or all of the following:

(a) a public statement that identifies the natural person, institution, financial holding company or mixed-financial holding company responsible, and the nature of the breach concerned;

(b) an order requiring a natural or legal person responsible for the contravention to cease, and desist from, the conduct concerned;

(c) in the case of a body corporate or unincorporated body, administrative pecuniary penalties of up to 10 per cent of the total annual net turnover including the gross income consisting of—

(i) interest receivable and similar income,

(ii) income from shares and other variable or fixed-yield securities, and

(iii) commissions or fees receivable

in accordance with Article 316 of the Capital Requirements Regulation, of the undertaking in the preceding business year;

(d) in the case of a natural person, administrative pecuniary penalties of up to €5,000,000;

(e) administrative pecuniary penalties of up to twice the amount of the benefit derived from the contravention where that benefit can be determined;

(f) suspension of the voting rights of the shareholder or shareholders held responsible for the contraventions referred to in paragraph (2).

(2) The contraventions referred to in paragraph (1) are the following:

(a) carrying out the business of taking deposits or other repayable funds from the public without being an authorised or licensed credit institution, as appropriate, in breach of the Act of 1971,

(b) commencing activities as a credit institution without obtaining a licence or authorisation, as appropriate, in breach of the Act of 1971,

…

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Central Bank Act 1971