HDFC Bank fined for non compliance with AML Norms
New Delhi, Jun. 19(HS): The Reserve Bank of India (RBI) has imposed fine of Rs. 1 crore on HDFC Bank for violating its directions in following KYC or Anti Money Laundering norms and not reporting the fraud in case of remittance of foreign currency.
RBI also issued show cause notice to HDFC Bank for advising it to not impose monetary penalty. After response from HDFC bank on this, penalty of Rs. 1 crore was imposed by RBI.
In this case, forged bills of entries were submitted by certain importers to the HDFC bank for remittance of foreign currency. This was brought to the notice of RBI by customs authorities.
In a statement on its website, RBI has cleared its stand by mentioning that its action is just for regulatory compliance and does not interfere in any transaction or agreement of the said bank with its customers.
