Banks not supplying transaction details to FIU: RBI

Bangalore, June 2 (UNI) The Reserve Bank of India (RBI) today said a number banks in the public sector in the country had not complied with the provisions of the anti-money laundering legislation in supplying monthly cash transaction report (CTR) to the Finance Intelligence Unit (FIU) of the Central Government.

Delivering his keynote addess at the Indian Banks' Association briefing on Compliance to Know your customer and Anti Money Laundering measures,'' RBI Executive Director Anand Sinha said under the provisions the Banks were supposed to send monthly reports on high value transactions so that the intelligence unit could investigate into the genuineness of the transactions.

Urging the Banks to adhere to the provisions without any delay, he said the Banks should be judicious in reporting such transactions, instead of flooding the FIU with reports and burdening its functioning.

Referring to the recent IPO scam, Mr Sinha said no provisions were iron clad so that the regulator could strictly ensure enforcement of various guidelines. The onus was on the Banks to ensure that loopholes traced in the guidelines were not abused for criminal purposes.

He said according to a global estimate amounts varying from 600 billion Dollars to two trillion Dollars were being laundered and this was a huge illegal money that was being channelised to make them clear funds.

Mr Sinha urged the Banks to strictly follow the know your customer and anti-money laundering norms so that the country did not suffer huge loss as the country's financial services were being greatly networked with global financial market.

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