Tag Archives: Know your customer

National Central Co-operative Bank Ltd., Bettiah, Bihar penalized by Reserve Bank of India

 

The Reserve Bank of India has imposed a monetary penalty of Rs5.00 lakh (Rupees five lakh only) on National Central Co-operative Bank Ltd., Bettiah , Bihar  for non-adherence to Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines.

 

The objective of KYC/AML/CFT guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities.

KYC procedures are designed to enable banks  know/understand their customers and their financial dealings better which in turn help them manage their risks prudently.

Who is a ‘Customer’ for KYC Policy?

For the purpose of KYC policy, RBI defines a ‘Customer’  as:

  1.      a person or entity that maintains an account and/or has a business relationship with the bank;
  2.     one on whose behalf the account is maintained (i.e. the beneficial owner). [Ref: Government of India Notification dated February 12, 2010 – Rule 9, sub-rule (1A) of PMLA Rules – ‘ Beneficial Owner’ means the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person]
  3.     beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law, and
  4.     any person or entity connected with a financial transaction which can pose significant reputational or other risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

 

 

RBI penalises The Kakinada District Co-operative Central Bank Ltd., Andhra Pradesh

 

As The Kakinada District Co-op Central Bank, violated RBI guidelines on Know Your Customers (KYC) norms and Anti Money Laundering (AML) guidelines, RBI imposed a monetary penalty of Rs5.00 lacs(Rupees five lacs only) on the said bank.

Kakinada is nicknamed as “Fertilizer City” (owing to the large concentration of fertiliser plants), “Pensioner’s Paradise” and “Second Madras”.

Kakinada is part of a Special Economic Zone and a proposed “Petroleum, Chemical and Petrochemical Investment Region (PCPIR)”. It is a hub to all the deep sea exploratory activity in the region due to its deep-water sea port and its proximity to the gas fields.

The area is famous for its mouth-watering sweet Kakinada Khaza.

 

RBI Penalises Rajsamand Urban Co-operative Bank Limited, Rajsamand

The Reserve Bank of India has imposed a monetary penalty of Rs 2.00 lakh (Rupees two lakh only) on Rajsamand Urban Co-operative Bank Limited, Rajsamand, for violating the Know Your Customers (KYC) norms and Anti Money Laundering (AML) directives of Reserve Bank of India.

Rajsamand situated in Rajasthan state, is most famous for an artificial lake created by Rana Raj Singh of Mewar in the 17th century.

On the embankment of the lake, visitors can view nine pavilions or ‘Nauchowki’ (nine Ghats), which were constructed by Maharana Raj Singh. The beautifully carved pavilions are festooned with pictures of the Sun, chariots, gods, birds and wonderful carvings. The history of Mewar is inscribed in 1017 stanzas, on twenty-seven marble slabs, that are called as ‘Raj Prasasti’. It has also been acclaimed as one of the longest etchings acknowledged in India.

RBI Penalises Adarsh Co-operative Bank Limited, Sirohi

            A monetary penalty of Rs5lacs was imposed on Adarsh Urban Co-operative Bank Limited, Sirohi, Reserve Bank of India.

The monetary penalty is for violating the Know Your Customers (KYC) norms and Anti Money Laundering (AML) directives of Reserve Bank of India.

Sirohi is a city in southern Rajasthan state in western India, and is the administrative headquarters of Sirohi District, and was formerly the capital of the princely state of the same name ruled by Deora Rajput. It is also known as Devnagari, due to a chain of 14 Jain temples.

Another major tourist attraction in Sirohi is Mt.Abu.