Dhanalaxmi Bank fined for violating anti-money laundering norms

Chennai, Nov 5
In a statement, the central bank said the penalty has been imposted for violation of RBI instructions, know-your-customer (KYC) norms and anti-money laundering (AML) standards.

"This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank and its customers," it said.

The central bank said it had issued a show cause notice to the bank for not having complied with the KYC and AML guidelines in respect of a current account under investigation of the Economic Offences Wing (EOW), Mumbai.

After considering the bank's reply, as also, personal submissions, information submitted and documents furnished, the RBI came to the conclusion that the bank had violated the instructions/guidelines issued, from time to time, which warranted imposition of monetary penalty on it.