Colleen was indeed first turned into a given name in the USA and Australia. It was not used as a name in Ireland until famous American actresses named Colleen (Dewhurst, for example) somewhat legitimized it in Ireland, and it got a bit of use there in the 1980s (but was never popular).
I have a friend who was born in the USA around 1950 named Colleen. Her paternal grandmother was born in Ireland, and she has told me that the grandmother was very upset at her son for naming his daughter Colleen. She says it was years before the grandmother stopped asking her son "When are you going to give the colleen a real name?" :)