The Reserve Bank of India has asked all banks and financial institutions to furnish a suspicious transaction report to the Financial Intelligence Unit-India within seven days of such a transaction, said a notification from the central bank on Thursday. “The report must be furnished within seven days of arriving at a conclusion that a transaction, including attempted transaction, whether or not made in cash, or a series of transaction integrally connected are of suspicious nature,” RBI said.
The RBI notification reiterates the government’s amendment to the Prevention of Money Laundering (Amendment) Act, 2009 (21 of 2009), which has come into force with effect from June 1. The RBI said it is the institution’s responsibility to ensure that its branches and franchises conform to these norms. Non-compliance will attract penal provisions of the acts concerned, RBI said.
The RBI norms on suspicious transactions come in the wake of Union Bank of India being pulled up by tax and finance ministry authorities in connection with large cash transactions of nearly Rs 1,000 crore at its branches by Balaji Bullion.
The Balaji Group’s Balaji Bullion and Balaji Universal Trade have been named as front organisations used by former Jharkhand chief minister Madhu Koda and his aides to deposit money allegedly made from scams.