| RBI to deal firmly with PML Act non-compliance |
| Our Bureau / Bangalore June 2, 2006 |
| Non-compliance with Prevention of Money Laundering (PML) Act by banks will be viewed seriously, the Reserve Bank of India (RBI) has warned. The Act, which came into force in 2005, is aimed at combating channelling of illegally earned money into the banking system. It provides for attachment and seizure of property and records. It also provides for stringent punishment, including rigorous imprisonment of up to 10 years and fine of up to Rs 5 lakh. As per the Act, every banking company, financial institution and intermediary needs to maintain a record of all transactions, the nature and value of which is prescribed in the rules. "The deadline for the banks to comply with the Act was December 31, 2005. We are procuring reports on the compliance from various banking fraternities. Non-compliance of the Act will be viewed seriously," Anand Sinha, executive director of RBI, said at a seminar on |
