RBI Penalizes Gujarat Co-operative Bank for Violating Anti-Money Laundering Guidelines

Mumbai (ABC Live):The Reserve Bank of India has imposed a monetary penalty of 1.00 lakh (on The Uttarsands People Co-operative Bank Limited, Uttarsanda, Dist. Kheda, Gujarat, in exercise of powers vested in it under the provisions of Section 47(A)(1)(b) read with Section 46(4) of the Banking Regulation Act, 1949 (AACS) for violation of Reserve Bank of India's guidelines of requirement of reporting of cash transactions in excess of ` 10.00 lakh to Financial Intelligence Unit-India (FIU-IND), as required under Anti-Money Laundering (AML) guidelines. Information to this effect was made by Ajit Prasad, Assistant General Manager, RBI through Press Release: 2010-2011/1358. The Reserve Bank of India had issued a show cause notice to the bank, in response to which the bank submitted a written reply. After considering the facts of the case and the bank's reply in the matter, the Reserve Bank came to the conclusion that the violations were substantiated and warranted imposition of the penalty.