Union Bank of India was fined Rs 54 lakh by the Financial Intelligence Unit for failing to disclose suspicious transactions and for not performing appropriate due diligence in accordance with anti-money laundering regulations. Significant anomalies were discovered by the federal government in accounts connected to an NBFC and its affiliated companies.
The Union Bank of India was fined Rs 54 lakh by the Financial Intelligence Unit (FIU) for “failing” to notify suspicious transaction reports and for not conducting due diligence for specific accounts at one of its Mumbai branches in accordance with the anti-money laundering law. After reviewing the Bank’s written and verbal replies, the federal agency noted that the claims against the lender were “substantiated” and issued the penalty notice on October 1 under section 13 of the Prevention of Money Laundering Act (PMLA).
Additionally, the Bank was penalized for its “failure” to do continuous due diligence and review the transactions to make sure they aligned with the client’s understanding, business, risk profile, and the source of funds for the designated accounts.