The Reserve Bank of India (RBI) has fined Bank of Baroda (BoB), HDFC Bank, and Punjab National Bank (PNB) for violating know your customer (KYC)/anti-money laundering (AML) norms.
BoB has been fined INR50m for weaknesses in internal control mechanisms related to certain anti-money laundering provisions.
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“The bank fully cooperated with the RBI during the process, leading to the conclusion of its findings,” the bank said in a BSE filing.
The bank further said that it has implemented a corrective action plan to strengthen internal controls and prevent recurrence of such incidents.
A fine of INR20m has been imposed on HDFC for pendency in receipt of bills of entry relating to advance import remittances made and failure in complying with know-your-customer/anti-money laundering rules.
“The RBI carried out the investigation and noted the deficiencies which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to Financial Intelligence Unit, and assigning of Unique Customer Identification Code to customers,” BoB said in a filing to the exchanges.
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By GlobalDataThe bank said that it has executed a “comprehensive corrective action plan” in this regard to improve its internal control mechanisms and prevent occurrence of similar incidents in the future.
Punjab National Bank has been fined INR30m for violations of RBI rules.
