The Reserve Bank today slapped a penalty of Rs 30 lakh on ICICI Bank and Rs 55 lakh on ING Vysya Bank for violating certain norms related to Know Your Customer and anti-money laundering, among others.
“The penalties have been imposed on these banks for contravention of various directions and instructions issued by the RBI on Know Your Customer norms/Anti-Money Laundering Standards/Combating of Financing of Terrorism /Prevention of Money Laundering Act, 2002,” RBI said in a statement.
These include “failure to obtain adequate documents for opening accounts, failure to carry out sufficient customer identification procedures, failure to examine control structure of entities.”
The banks also failed to ascertain the identification of natural persons behind entities, to carry out effective enhanced due diligence, to carry out appropriate risk categorisation, besides delaying filing of the Suspicious Transaction Reports, RBI said.
On a careful examination of the banks’ written replies to the show notices RBI had issued and the oral submissions made during the personal hearings, the RBI said “the violations were established and the penalties were accordingly imposed”.