RBI imposes fine on 6 PSU banks for violating KYC, AML norms--Business Standard-23.08.2013
Collective fine for these banks is Rs 6 crore, highest penalty of Rs 2 crore was levied on Dena Bank
In the third set of action on banks for violating know your costumer (KYC) and anti money laundering (AML) guideline Reserve Bank of India (RBI) today penalized six public sector banks.
Collective fine for these banks is Rs 6 crore and highest penalty of Rs 2 crore was levied on Dena Bank.
Other banks who have been penalized are – Allahabad Bank, Bank of Maharashtra, Corporation Bank, IDBI Bank and Indian Bank.
IndusInd Bank’ s reply to RBI’s show cause notice was found satisfactory and no violation of serious nature was established to the central bank decided to issue a cautionary letter to the bank and impose no monetary penalty.
RBI has carried inspections of books of the banks after online portal’sCobrapost sting operation which showed bank employees offering to launder client’s money.
In the first part of the sting operations the portal showed the videotapes of top three private banks – ICICI Bank, HDFC Bank and Axis Bank indulging in illegal transactions.
In the second part it exposed many public sector banks including country’s largest State Bank of India (SBI) and insurers including Life Insurance Corporation of India.
On the basis of investigation, RBI in June had imposed collective penalty of Rs 10.5 crore on ICICI Bank, HDFC Bank and Axis Bank. In July, central bank imposed penalty on 22 public and private banks and issued cautionary letters to six foreign banks and one public sector bank.
RBI reiterated that there is no prima facie evidence of money laundering however it said that any conclusive inference in this regard can be drawn only by an end to end investigation of the transactions by tax and enforcement agencies.
Collective fine for these banks is Rs 6 crore and highest penalty of Rs 2 crore was levied on Dena Bank.
Other banks who have been penalized are – Allahabad Bank, Bank of Maharashtra, Corporation Bank, IDBI Bank and Indian Bank.
IndusInd Bank’ s reply to RBI’s show cause notice was found satisfactory and no violation of serious nature was established to the central bank decided to issue a cautionary letter to the bank and impose no monetary penalty.
RBI has carried inspections of books of the banks after online portal’sCobrapost sting operation which showed bank employees offering to launder client’s money.
In the first part of the sting operations the portal showed the videotapes of top three private banks – ICICI Bank, HDFC Bank and Axis Bank indulging in illegal transactions.
In the second part it exposed many public sector banks including country’s largest State Bank of India (SBI) and insurers including Life Insurance Corporation of India.
On the basis of investigation, RBI in June had imposed collective penalty of Rs 10.5 crore on ICICI Bank, HDFC Bank and Axis Bank. In July, central bank imposed penalty on 22 public and private banks and issued cautionary letters to six foreign banks and one public sector bank.
RBI reiterated that there is no prima facie evidence of money laundering however it said that any conclusive inference in this regard can be drawn only by an end to end investigation of the transactions by tax and enforcement agencies.
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