RBI asked bank and financial institutions to report suspicious deals within 7 days
Nov 21, 2009 RBI
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.
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Tags: cash transactions, chief minister, finance ministry, Financial Institutions, intelligence unit, koda, penal provisions, rbi norms, reserve bank of india, suspicious nature, suspicious transaction, suspicious transactions, transaction report, union bank of india
Govt asked UBI to get all its branches audited for high-value transactions
Nov 19, 2009 Audit
Taking a serious note of Union Bank of India (UBI) not reporting high-value transactions to it, the government has asked the state-owned bank to immediately carry out an audit of all its branches to check for such large deposits that have gone unreported.The Income Tax department, during a probe into alleged money laundering by former Jharkhand chief minister Madhu Koda, had stumbled on a bank account at one of UBI’s branches in Zaveri Bazar in Mumbai where approximately Rs214 crore had been deposited in cash between January five and March 30, 2007.
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Tags: cash deposits, cash transactions, chief minister, intelligence unit, Money laundering, union bank, union bank of india, union bank of india ubi, value transactions, zaveri bazaar
ICAI HAS STARTED WORKING WITH INVESTIGATING AGENCIES
Oct 14, 2008 ICAI
NEW DELHI: Accounting regulator ICAI has started working with investigating agencies under the home ministry and the finance ministry to help them track down the flow of unaccounted money in the economy.
The idea is to share with agencies like the Central Bureau of Investigation (CBI) and the Financial Intelligence Unit in the finance ministry the questionable aspects of financial statements that statutory auditing professionals come across while scrutinising the records of companies. Based on the leads given by the accounting regulator, these agencies would be able to further investigate and unearth white-collar crimes and money laundering. The co-ordination between the government and the ICAI to raise regulatory oversight on the accounts of companies and financial institutions comes in the backdrop of the ongoing terror trail in the country.
The accounting regulator’s oversight committee also randomly selects the financial statements of companies which are in the public domain to see if there is any discrepancy. In case of doctoring such records, ICAI takes action against the professional who endorsed the financial statement.
The regulator’s wealth of information would now be helpful for the investigative agencies. Officials in ICAI have confirmed that it is closely working with the CBI. While the regulator is tight-lipped about its methodology of work, it is understood that it would increase its scrutiny during its auditing of financial accounts of companies.
Sources said the move is aimed at keeping a track on the way money flows in and out of a concern, and passing on information about suspicious fund movements to the intelligence organs dealing in financial crimes.
It is believed in government circles that its investigating network would get a fillip if ICAI pitches in with key inputs on discrepancies in financial statements. Money laundering is a practice wherein the source and destination of financial transactions are concealed to assist the monetary needs of an underground economy. The government believes that chartered accountants’ expertise in auditing and internal controls would be of great use.
Tags: CBI, central bureau of investigation, financial crimes, financial intelligence, financial statement, financial transactions, ICAI, intelligence unit, INVESTIGATING AGENCIES, oversight committee, regulatory oversight