Central Bank commissions independent review of enforcement activities

The Central Bank of Ireland (“Central Bank”) has commissioned an independent review of its enforcement activities, which will be led by Josephine Feehily, former Chair of the Revenue Commissioners and first Chair of the Policing Authority (“Review”). The Central Bank has stated that, given the evolution of the financial system, which has become larger, more complex and more interconnected, together with significant changes to the regulatory framework and the Central Bank's enforcement framework, a review of its enforcement activities is timely.

Scope of the Review

The Central Bank has published the Terms of Reference, dated July 2026, for this Review, which will consider the effectiveness and efficiency of the Central Bank’s enforcement activities, including the role of enforcement within the wider supervisory framework.

The Review will examine:

• the Central Bank’s structures and processes for enforcement activity and decision-making,
• the criteria and processes used to decide when a case should be selected for enforcement action and continued,
• the timeliness of enforcement activities, and
• the transparency of enforcement activities for the public and firms involved, and the individuals who may be impacted.

The Review will also have regard to best practice by regulators performing similar functions domestically and internationally, as well as applicable international standards and principles.

Supplemental Prohibition Guidance

In addition to this Review announcement, on 30 July 2026, the Central Bank published its Supplemental Guidance on Prohibition Notices under the Fitness and Probity Regime, (the “Supplemental Guidance”) which provides greater clarity on the circumstances and principles relevant to prohibition decisions. In particular, the guidance sets out the factors that may be considered when determining whether a prohibition is necessary and, if so, the appropriate scope, duration and conditions of that prohibition. It also provides guidance on the publication, termination, variation and revocation of Prohibition Notices and outlines the circumstances in which publication may be necessary to protect users of financial services, support confidence in the financial system and uphold regulatory standards. The guidance further confirms that personal circumstances, privacy considerations and submissions from affected individuals will be considered before publication decisions are made.

The publication of the guidance, together with the recommendations from the Enria Review (discussed further below), demonstrates the Central Bank's ongoing efforts to enhance the fairness, transparency and effectiveness of its regulatory and enforcement processes.

Recent Judicial Scrutiny of Enforcement Processes

The commission of the Review and the publication of the Supplemental Guidance come against the backdrop of Central Bank of Ireland v CD [2026] IEHC 203 in which the High Court refused to confirm a Prohibition Notice issued by the Central Bank, finding deficiencies in procedural fairness in the underlying fitness and probity investigation.

The decision to commission an independent review was referenced by Governor Gabriel Makhlouf during his appearance before the Oireachtas Finance Committee on 15 July 2026. Governor Makhlouf stated that the Central Bank was taking the judgment "very seriously" and would "fully" implement its findings. He also emphasised that the Review was not intended to revisit the CD decision itself, but rather to examine the Bank's broader enforcement activities, while noting that he expected the reviewer to consider the judgment as part of that work.

Independent Review as a Catalyst for Change

The commission of this Review is a significant development in the Central Bank's ongoing efforts to enhance its enforcement framework and comes at a time when the Central Bank's fitness and probity and enforcement processes have been the subject of increased scrutiny, particularly in relation to procedural fairness.

The Central Bank's approach to independent review is not without precedent. Following the decision in AB v Central Bank of Ireland, in which the Irish Financial Services Appeals Tribunal identified deficiencies in the fair procedures applied by the Central Bank as part of its fitness and probity gatekeeping process, the Central Bank commissioned an independent review of its fitness and probity framework, led by Andrea Enria. The resulting Fitness and Probity Review (the "Enria Review"), published in July 2024, made a series of recommendations aimed at improving the effectiveness, efficiency and fairness of the fitness and probity process.

In April 2025, the Central Bank published its Fitness and Probity Review: Report on Recommendations, setting out its response to the Enria Review and the measures it proposed to implement across its fitness and probity gatekeeping framework. The Central Bank subsequently published its Fitness and Probity Review: 2026 Report on Implementation of Recommendations in June 2026, confirming that all twelve recommendations arising from the Enria Review had been implemented. Taken together, these publications demonstrate the Central Bank's willingness to commission independent reviews and to implement resulting recommendations aimed at strengthening its regulatory processes.

As with the Enria Review, this Review and any resulting recommendations will likely lead to further actions by the Central Bank aimed at enhancing its investigative procedures and strengthening its supervisory, fitness and probity, and enforcement functions.

A report, including recommendations, will be provided to the Governor by 31 January 2027 and published in due course.