“Pursuant to the internal audit of the Bank of Baroda, the Reserve Bank of India and investigative agencies in October 2015 were advised by the Bank of certain irregularities observed,” the bank informed the exchanges.
The RBI carried out an inspection after Rs 6,100 crore import remittances were effected by Bank of Baroda’s Ashok Vihar branch in New Delhi. Both CBI and the Enforcement Directorate are probing the huge remittances to Hong Kong from the bank.
The amount was allegedly transferred in the garb of payments for imports that never took place, investigators suspect.
Now the RBI investigation has noted deficiencies and failures in internal control mechanisms in respect of certain anti-money laundering provisions by the state-run lender.
These deficiencies relate to monitoring of transactions, timely reporting of suspicious dealings to the Financial Intelligence unit and assigning of Unique Customer Identification Code to its clients.
“The Bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur,” Bank of Baroda added in its statement.