Banks warned against money laundering acts by RBI
By Joseph Samson
Dec 9, 2010
Print    Email    RSS   

Increasing number of money laundering and terrorism finance activities has made Reserve Bank of India generate alert to banks so that they can protect themselves from depositors acting as money mules.

Money muling occurs by way of an individual having a bank account getting recruited to receive check deposits or electronic transfers and once it so happens, the funds are transferred to the account of another individual.

Money mules are recruited by several means like spam e-mails, advertisements on genuine recruitment web sites, social networking sites, instant messaging and advertisements in newspapers.

These money mules when caught get their accounts suspended which leads to financial losses on the part of the bank.

Their addresses and contact information is mostly found to be fake. Thus know your customer (KYC) norms have to be followed strictly by banks. Also Anti-Money Laundering (AML) standards/ Combating of Financing of Terrorism (CFT) /Obligation of banks under Prevention of Money Laundering Act, 2002 need to be adhered to in order to prevent from money muling transactions.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Home Equity Loan: A shoulder you can bank...
What should you do if interest rates are...
Home Loan: A way to reduce your taxable...
Identify the cheapest home loan offer
J&K Bank raises PLR

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive