AIB has given details of a seperate investigation into what it describes as "unacceptable practices" at AIB Investment Managers and tax issues relating to former senior executives.
The statement comes following two investigations carried out by the bank. The first took place in September of last year. This centred on the relationship between AIB Investment Managers and a British Virgin Island investment company, Faldor Ltd.
Faldor was made up of five former senior executives of AIB and it had a relatoniship with AIBIM from 1989 to 1996.
The bank's investigation found there was a breach of tax law in relation to this company. It also found that the former AIB executives behind Faldor received a prefential allocation of investments ammounting to €48,000.
Seperately that investigation found that two former and three current senior executives at the bank had tax issues unconnected to Faldor.
A second investigation was then initiated supervised by former Central Bank Governor Maurice O'Connell. It found in total there were nine transactions that involved unacceptable practices.
The bank is to compensate clients of AIBIM €330,000 arising from this. AIB is also to underwrite €800,000 arising from tax and penalties.
AIB said in a statement it cannot, for legal reasons, identify the individuals involved but that appropriate disciplinary action is underway.
Mr Michael Buckley, AIB Group Chief Executive, said: ' The practices uncovered have no place in AIB.
The leadership behaviours I expect of senior management in AIB are clear. I am determined that they will be maintained and validated through a regular accountability process.
"I am happy that the historic, unacceptable deal allocation practices in AIBIM identified in the investigations are a thing of the past and had, by 1997, been replaced by the good practices and standards that remain in place."
Earlier this month AIB apologised for systemically overcharging foreign exchange customers over an eight year period due to a transaction fee error in its computer systems. It placed €25m with the Central Bank for potential refunds.
The bank, which is in the middle of a review of its internal procedures, said last week that another error had led to hundreds of mortgage customers paying for insurance cover they did not request.
Also, AIB said earlier this week that it was trying to trace the beneficiaries of trust funds it may have overcharged due to an error dating back to 1971.
It said in 2002 it had noticed that from 1971 it had been levying new fees on trusts that were entitled to have their charges remain unchanged. It had since paid €3.4m in refunds and compensation.
However, the bank said there were a number of funds that had been closed during the period in question that might also be entitled to refunds.
