trending Market Intelligence /marketintelligence/en/news-insights/trending/83ODbnsowjZdfKtvHXav-g2 content esgSubNav
In This List

Reserve Bank of India fines Bank of Baroda 50M rupees for internal control deficiencies

Blog

Insight Weekly: Global stock performance; hydrogen pilot projects; Powell's Fed future unsure

Blog

How Financial Institutions are Managing Exposure to U.S. Municipals

Blog

Top 100 Banks: Capital Ratios Show Resilience to the Pandemic

Blog

Banking Essentials Newsletter: October Edition


Reserve Bank of India fines Bank of Baroda 50M rupees for internal control deficiencies

The Reserve Bank of India has fined 50 million rupees forfailing to comply with anti-money laundering guidelines.

The bank said July 25 that the penalty was imposed followinga Reserve Bank of India investigation into irregularities disclosed by the bank in October 2015.

The central bank's investigation found lapses in controlmechanisms related to several anti-money laundering provisions, such as themonitoring of transactions, timely reporting to India's financial intelligenceunit and assigning unique customer identification codes to customers.

The central bank and investigative agencies probed Bank ofBaroda after the lender said in October 2015 that an internal investigationrevealed alleged illegal foreign exchange transactions at the bank.

India's Central Bureau of Investigation said at the timethat the scaminvolved the alleged and irregular transfer of around 60 billion rupees offoreign exchange to Hong Kong by 59 current account holders and unknown bankofficials under the garb of payments toward suspected nonexistent imports. TheCBI arrested twoofficers of the bank for their alleged involvement in the scam.

Bank of Baroda said it has implemented a corrective actionplan to strengthen internal controls and to ensure that such incidents do notrecur.

As of July 22, US$1 wasequivalent to 67.15 Indian rupees.