Ponzy Schemes: Five Banks (MCB, SBM, SBI, MPCB, AfrAsia) May Appeal

8 years, 7 months ago - June 13, 2013
The names of the five banks will have to pay fines for failing to comply with the directives on money laundering scams alleged Ponzi scheme are now known. It is the Mauritius Commercial Bank, State Bank of Mauritius, the State Bank of India, the Mauritius Post and Cooperative Bank and Bank AfrAsia.

The Director of Public Prosecutions has confirmed this information on Radio More Wednesday. Otherwise one of these banks would be subject to the ICAC investigation into an alleged offense of money laundering. Here's everything you need to know about this.

What is wrong with one of these banks?

"Many crimes were committed, mainly the fact that the principles of 'Know Your Customer' (KYC) have not been observed," said the Governor of the Bank of Mauritius. However, he continues, these principles are very important for the banking sector. "This is the heart of any banking transaction. What happened is very serious, because it allows malicious people to enter into the banking system.

However, each bank acts as a policeman not only for his bank, but for the entire banking sector, "insists Rundheersing Bheenick. It also criticized the banks have closed their eyes to certain transactions of their customers that exceeded Rs 500,000. The Governor said, in the process, before the imposition of sanctions, the Bank of Mauritius has asked the banks to "show cause" why sanctions should not be taken against them. "Every bank concerned is aware of the allegations against them and they have already provided an explanation," he says.

How much will they pay?

These banks are subject to fines ranging from Rs 100,000, Rs 500,000 or a fine not exceeding Rs 1 million, according to the Banking Act. "These penalties depend on the severity of the offenses committed," said the Governor.

What will happen?

These five banks receive a letter from the Bank of Mauritius on the sanctions that will be imposed. "It is the responsibility of the administration of the BoM. Everything is in their hands, "said Governor Rundheersing Bheenick. These banks have already received these letters? "I can not say whether these letters have been sent or received," says the Governor. Once these banks have received these letters, they have two options. "They can choose to pay the fine or appeal to Banking Services Review Panel. This is the procedure! "Says Rundheersing Bheenick. The latter has, however, refused to deny or confirm the names of the banks involved.

Bheenick: "The DPP had already given me its approval ... "

The side of the office of the DPP, it was confirmed that the DPP has directed that fines are imposed on these banks. The DPP had given its approval for a long time. "That was before I speak publicly," said the Governor of the Bank of Mauritius has unveiled the whole affair at the annual dinner of the Mauritius Bankers Association (see Challenge More Saturday).

Other banks affected

"Other banks, including those that make retail would also be affected." This is what we said a source in banking circles. However, in the banking sector, it is estimated that banks are not the only ones to be blamed in this case. "How is it that it is only after the case to the Ponzi that the Bank of Mauritius discovered that the banks have not complied with the principles of the 'Know Your Customer'? What about the role of the Financial Intelligence Unit (FIU) was aware of Suspicious Transactions Reports (STR) reported by banks? "Asks do we in the industry.

"It is clear that there has been no follow-up," says a banker. The latter states that when a customer opens an account, he gives a copy of his license and reveals the nature of its business. "If he says he will do a turnover of Rs 500,000 and Rs 1 million that is, bank will know after a month. On the other hand, when a bank sends an STR to the FIU, it should not close the bank account immediately to allow the relevant authorities to trace back, "says our source.


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