Union Bank Fined for AML Failures: A Financial Wake-Up Call

The Financial Intelligence Unit (FIU) fined Union Bank of India Rs 54 lakh for failing to adhere to anti-money laundering laws. The investigation revealed irregularities in KYC/AML compliance, leading to a penalty for not reporting suspicious transactions and lacking sufficient due diligence for accounts in Mumbai.

The Financial Intelligence Unit has levied a Rs 54 lakh fine on Union Bank of India for not reporting suspicious transactions and lacking due diligence in accordance with anti-money laundering laws.

Following an investigation, the FIU found irregularities in the bank's operations, specifically linked to KYC/AML compliance, prompting the penalty on October 1 under the Prevention of Money Laundering Act.

Further scrutiny revealed serious lapses in monitoring accounts with disproportionate fund flows, triggering the need for comprehensive reviews and enhanced diligence measures by the bank.

(With inputs from agencies.)