New Delhi : 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, 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.
“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 BoB which will commensurate the violations committed by the bank,” the order issued by FIU Director Pankaj Kumar Mishra said.
South Africa exit
Meanwhile, the bank, which is facing investigation in South Africa on its dealings with the controversial Gupta family, has “almost completed” its exit from the country, a senior bank official said.
“It’s almost completed. There are bits and pieces that need to be closed based on bilateral discussions with some customers, but most of it was exited by end-March,” the official said.
The bank did not look for a buyer for its operations in South Africa in the wake of the negative publicity linked to its operations, the official said.