The Reserve Bank of India (RBI) has implemented fines to four banks for non-compliance with KYC, AML, and account opening standards.
Fines of INR 5m ($72,000) were given to Allahabad Bank, Punjab National Bank, and UCO Bank, while a penalty of just INR 2.5m ($36,000) was made to Corporation Bank.
These fines are based on the deficiency of the banks regulatory compliance and is not commenting on the validity of any transaction or agreement between the banks and their customers.
An investigation was made into the four banks based on a compliant examination of current accounts; however, RBI found deficiencies in their procedures for KYC, AML and standards for opening current accounts.
Following the findings, the reserve bank had issued notices to each bank advising them to show cause to why compliance directions were not being taken. After it had reviewed replies and submissions made during personal hearings, it decided charges were necessary.
RBI recently fined HDFC INR 10m ($143,000) for failing to comply with KYC and AML and not reporting fraud incidents. An investigation was made following a reference from customs authorities regarding the submission of forged bill of entries by certain importers to HDFC for remittance of foreign currency.
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