It was the turn of The Bapunagar Mihila Co-operative Bank Ltd., Ahmedabad to be imposed with a monetary penalty of Rs5lacs/-(Rupees five lacs only), by Reserve Bank of India.
The monetary violation was for violation of RBI guidelines on multiple grounds.
a) Exceeding the ceiling on unsecured advances.
b) Delay in reporting of Suspicious Transactions Reports.
c) Non-filing of First Information Reports(FIRs)
d) Delay in submission of FIRs without any valid reasons.
The Bank has two branches and both are situated in Ahmedabad. As it has its main branch in Bapunagar locality of Ahmedabad, it has included ‘Bapunagar’, in its name, but it has nothing to do with Mahatma Gandhi, Father of the Nation.
Reporting to Financial Intelligence Unit – India
(a) In terms of the PMLA rules, banks are required to report information relating to cash and suspicious transactions to the Director, Financial Intelligence Unit-India (FIU-IND) in respect of transactions referred to in Rule 3 at the following address:
The ‘Suspicion Transaction Report’ filed by the Banks is one of the major tracking tools used by Financial Intelligence Unit – India (FIU-IND) for analysing suspicious or unusual activity and disseminating it as necessary.
Banks are encouraged to file STRs if they have reasonable ground to believe that the transaction involve proceeds of crime generally irrespective of the amount of transaction and/or the threshold limit envisaged for predicate offences in part B of Schedule of PMLA, 2002.
RBI Auditors at the time of the Annual Inspections focus on ‘Suspicious transactions’ and their reporting to the concerned authorities.
Re-disseminated by Prashant N. Banker by daytime, Blogger by night.
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