The Hindu Business Line : Koda scam: ‘All norms followed’

New Delhi, Nov. 18 Union Bank of India, which is under the authorities’ scanner in connection with the Koda scam, has denied the Tax Department’s charges that it did not report transactions of over Rs 10 lakh to the Financial Intelligence Unit.

The bank said it had followed all the norms and added that it was fully cooperating with the revenue and tax authorities on the Rs 4,000-crore money laundering scam.

Cash transactions

The Union Bank of India Chairman and Managing Director, Mr M.V. Nair, told reporters here on Wednesday that the bank has followed the RBI’s cash transaction reporting system and reported every cash deposit of over Rs 10 lakh to the authorities concerned.

According to the tax department, the bank failed to provide details of cash transactions of over Rs 10 lakh by Balaji Bullion Bazar and Balaji Bullion Corporation, alleged to have aided the former Jharkhand Chief Minister, Mr Madhu Koda, who is at the centre of the scam.

Union Bank’s Zaveri Bazaar branch allegedly had the accounts of Balaji Bullion Corporation and Balaji Bullion Bazaar. There were cash transactions worth Rs 214 crore between January and March 2007 regarding one company, while cash transactions worth Rs 644 crore relating to the other company were made during 2006 and 2007.

No link

Mr Nair said the bank has followed all the Know Your Customer and anti-money laundering norms, adding, however, that: “We will audit all those branches where high-level transactions happen.”

“But I see absolutely no link (to the Koda scam) whatsoever,” he said.

“Our oversight mechanism of audit, internal and external, has not pointed out any irregularities or suspicious transactions,” Mr Nair said.

He said the transactions concerned were of bullion dealers who were the bank’s regular customers. Since the bank is authorised to do bullion dealings, these customers bought gold by remitting funds through proper delivery channels, he said. “Funds were remitted to Noida branch for delivery of gold,” he said.

Related Stories:
The unfolding Koda scam

More Stories on : Public Sector Banks | Economic Offences

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Investments into Indian companies likely to pick up

Crisis Management — Effect on the RBI’s balance sheet

Managing risk and performance

‘Move for global common currency unlikely to succeed’

Calicut City Co-op Bank posts profit

Ratnagiri Gas may tie up risk cover for project soon

Union Bank plans $500-m bonds issue

Koda scam: ‘All norms followed’

Barclays Bank open to buys in India

A long wait for Indian banks abroad

Bank credit increases by Rs 23,147 cr

Kotak Bank opens Dubai rep office

TMB celebrates Founder’s Day