FIU imposes over Rs. 1.66 crore penalty on Axis Bank

The Financial Intelligence Unit has slapped a fine of more than Rs 1.66 crore on Axis Bank for “failing” to put in place a mechanism to detect and report suspicious transactions carried out at one of its branches by creating a “fraud” account in the name of counter-terrorist commando force NSG.

The federal agency has issued an order on June 3 under Section 13 of the Prevention of Money Laundering Act (PMLA) that empowers its Director to impose a monetary penalty on a reporting entity (like Axis Bank) if the agency finds that its designated director on the board or any of its employees failed to comply with the obligations mandated under the said law.

A query sent to Axis Bank did not elicit an immediate response. A total fine of Rs 1,66,25,000 was issued by the FIU against the bank on alleged charges of violation of the anti-money laundering law, the order said.