If you have a bank account with Union Bank of India, this news is important for you.
The Financial Intelligence Unit (FIU) has fined Union Bank ₹54 lakh.
This fine is for failing to report suspicious transactions and not investigating certain accounts at a Mumbai branch, as required by the Prevention of Money Laundering Act (PMLA).
The FIU, which operates under the Finance Ministry, issued the penalty notice on October 1.
Issues with KYC and Compliance
The FIU stated that they found the bank guilty of not following rules related to Know Your Customer (KYC) and Anti-Money Laundering (AML).
During their investigation,
the FIU discovered irregularities in the bank’s operations, particularly concerning specific current accounts at the Hill Road branch in Mumbai.
They found that large sums of money were being transferred to accounts of a Non-Banking Financial Company (NBFC) and its related units.
The bank only filed one suspicious transaction report (STR), despite the high volume of transactions and several alerts about these accounts.
The FIU expressed concerns about the bank’s lack of thorough investigation and monitoring before issuing the notice.
Impact on Customers
While this fine reflects the bank’s regulatory issues, it does not affect individual customers.
If you have an account at Union Bank, your transactions will continue as usual.
The action taken by the FIU is related to the bank’s compliance failures, not your personal banking activities.
