Bank of Baroda fined after TBML investigation

India’s Financial Intelligence Unit (FIU) has fined Bank of Baroda US$1.4 million for failing to comply with anti-money laundering (AML) norms and regulations.

The fine follows an investigation centred on alleged trade-based money laundering (TBML) schemes in which traders colluded with bank officials to evade duties and taxes.

Reporting failures

According the FIU, Bank of Baroda did not have an effective system for reporting suspicious transactions linked to the US$900 million scam at one of its branches.

In its three-year investigation, the FIU found the state-owned bank had failed at least five times to detect wrongdoing and instances of money laundering at its branch in Ashok Vihar in Delhi.

Right of appeal

The FIU’s fine is based on the number of times it assessed that Bank of Baroda had failed to file Suspicious Transaction Reports in sufficient time as demanded by the Prevention of Money Laundering Act (PMLA).

Bank of Baroda can challenge the FIU’s findings and penalty before the Appellate Tribunal of the PMLA within 45 days.



Categories: Trade Based Financial crimes News

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