For irregularities in internal control mechanisms
Bank of Baroda announced that pursuant power conferred under Banking Regulation Act, 1949, the Reserve Bank of India has imposed a penalty of Rs 5 crore on Bank of Baroda.Pursuant to the internal audit of the Bank of Baroda, the Reserve Bank of India and investigative agencies in October 2015 were advised by the Bank of certain irregularities observed.
The RBI carried out the investigation and noted the deficiencies which were reflective of weaknesses and failures in internal control mechanisms in respect of certain AML provisions such as monitoring of transactions, timely reporting to FIU, and assigning of UCIC to customers. The Bank fully cooperated with the RBI during the process, leading to the conclusion of its findings.
The Bank has implemented a comprehensive corrective action plan, to strengthen internal controls and to ensure that such incidents do not recur.
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