HindustanTimes Sun,28 Dec 2014

PSBs under lens for offshore cash transfers

HT Correspondent, Hindustan Times  New Delhi, April 07, 2013
First Published: 23:45 IST(7/4/2013) | Last Updated: 23:46 IST(7/4/2013)

Public sector banks including Bank of Baroda may come under the scanner of the Reserve Bank of India (RBI) and the finance ministry in the wake of a recent report by CNN-IBN and suggesting violation of know your customer  (KYC) norms by BoB while dealing with offshore cash transfers.


BoB is said to have been involved in transferring Dawood Ibrahim's funds as well. The RBI is likely to seek a report from banks on the issue.

Several public sector banks have also undertaken internal enquiries to ensure no breach of KYC norms have taken place, even as BoB underlined that all KYC norms have been adhered to by the bank.

The report had indicated that BoB's Nassau branch in the Bahamas has been used for transferring illegal funds of Ibrahim.

Banks with overseas branches have asked all their officials posted outside India to ensure that all norms are followed.

An online tracking system of all accounts, especially fresh ones, has also been initiated by a few banks including Indian Bank.

"I have no knowledge whether the government would get into the act but there has been no violation of norms in any way by any bank. But we are doing an internal exercise of understanding whether all norms are being followed, or not," a public sector bank chairman, who did not wish to be identified, told Hindustan Times.

Besides, banks have also instructed their officials both within the country and outside to ensure that all Know Your Customer (KYC) guidelines are strictly adhered to.

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