FIU slaps Rs 9 cr fine on BoB

Source: The Hitavada      Date: 05 Apr 2018 11:26:30



By Neelabh Srivastava

THE Financial Intelligence Unit (FIU) has slapped Rs 9 crore penalty on Bank of Baroda for “failing” to adhere to anti-money laundering norms, and not having an effective system to report suspicious transactions linked to the Rs 6,000 crore scam in its Delhi-based branch.The FIU has levied the maximum penalty of Rs 1 lakh, as stipulated under the Prevention of Money Laundering Act (PMLA), for each instance of “delayed” filing of Suspicious Transaction Reports (STRs) by the state-owned bank in the case.The central financial intelligence gathering and dissemination agency under the Ministry of Finance is empowered to investigate and levy penalties on banks and other financial intermediaries, under the PMLA, if they fail to comply with anti-money laundering procedures.

After about three years of investigation, the FIU has held that the bank failed on at least five counts in detecting wrongdoing and instances of money laundering at its branch in Ashok Vihar in Delhi, where a Rs 6,000 crore forex remittance scam had been reported in 2015. “After taking into consideration all the facts and circumstances of the case, I, in exercise of the powers conferred upon me under the PMLA impose a total fine of Rs 9 crore on Bank of Baroda (BoB) which will commensurate the violations committed by the bank,” the order issued by FIU Director, Pankaj Kumar Mishra said. The 48-page order, accessed by PTI, has been issued on March 27 and the bank has been asked to deposit the fine within 21 days.