PNB blames concurrent auditor for not flagging off SWIFT transactions

Reconciliation of SWIFT messages with trade module of the core banking system was not followed and the concurrent auditor did not point out this irregularity, the lender said

State-owned Punjab National Bank has blamed the concurrent auditor at its Brady House branch in Mumbai for not detecting the Rs 129-billion scam related to fraudulent letters of undertaking (LoUs) issued to the Nirav Modi and Mehul Choksi groups of companies.

In its submission to investigative agencies and the government, PNB said LoUs were fraudulently issued for seven years, transmitting through SWIFT, an international messaging system, on a standalone basis.

“The reconciliation of SWIFT messages with the trade module of the core banking system was not followed and the concurrent auditor did not point out this irregularity,” PNB informed the