REGULATORY ACTIONS FOR THE VIOLATION OF ANTI MONEY LAUNDERING REGULATIONS

Regulatory Actions taken on Entities in India, United Arab Emirates and United States of America for Violating Anti Money Laundering Regulations

  1. India : RBI imposed penalty on Balasinor Nagarik Bank Limited

 RBI imposed a penalty of INR 2,00,000 on Balasinor Nagarik Bank Ltd (Gujarat) for violating compliance with respect to operational instructions, for non compliance with Unique Customer Identification Code (UCIC) related guidelines and sanctioning loans on gold/silver beyond the ceiling prescribed.

Source: https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=35356

  1. United Arab Emirates: ABN AMRO bank fined by United Arab Emirates regulatory over Money Laundering Systems

The Dubai Financial Service Authority decided to impose fine on ABN as a result of its failure to supervise its staff properly and deficiencies in its Anti money laundering policies and control.

ABN failed to identify the risk of Money laundering to which the business was exposed. The system failed to ensure that the measures of control and procedures which the company adopted to control money laundering were ineffective and supervise the activities of all its employees to ensure that all the employees were trained and policies, procedures, systems and controls related to money laundering could be dealt. Though the bank collected relevant documents about the customer it did not verify the identity of every customer and politically exposed persons related to the banks customers

Dubai Regulatory over Money Laundering system imposed on ABN AMRO Bank a fine of USD640,000 and directed ABN to take and complete remedial steps in relation to its AML – related systems and controls.

Source: http://www.dfsa.ae/Documents/Regulatory%20Actions%202015/002_ABN%20DN_02112015_DFSA_FINAL.pdf

  1. United States: Settlement agreement between the US department of Office of Foreign Assets control and Credit Agricole Corporate and Investment Bank

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a USD 329,593,585 settlement with the Credit Agricole Corporate and Investment bank (CA-CIB) to settle liability for apparent violations of US sanctions. The bank indulged in the activity of using cover payments and implementing special payment practices in a manner that omitted reference to US sanctioned parties, thereby preventing UN financial Institutions from appropriately reviewing and analyzing the transactions for compliance with OFAC.

Source:http://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Pages/20151020_33.aspx

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