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Central Bank of India has found one more use for the CCTVs in its branches. Besides security, the bank will scan the video recordings for fishy dealings, if any, in the sale of financial products and services.
This move follows an undercover sting operation by online magazine Cobrapost at some of the branches of 30 banks and insurance companies, where officials allegedly offered to convert tax-evaded money into legitimate money.
According to R.K. Goyal, Executive Director, Central Bank of India, “Our bank’s chief security officer will call for video recordings of different branches on sample basis. Almost all our branches have CCTVs (closed circuit TVs).
“After going through the recordings, if the officer finds that something fishy is going on in any of the branches, the matter will be escalated to the top management.
“So, we are taking all steps (to prevent regulatory violations).”
In this regard, the public sector bank will select one branch under the jurisdiction of each of its 77 regional offices for the investigation. As of March-end 2013, it had 4,294 branches.
“This (investigation) will also send a message to the field staff that they should comply with know-your-customer (KYC) norms. Only then they should open accounts and allow transactions,” said Goyal.
Central Bank conducted an internal investigation at its large corporate branch in Delhi to check if violation of KYC norms, as alleged by the online magazine, had taken place.
KYC is a customer identification process.
It involves making reasonable efforts by banks to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, and reasonableness of operations in the account in relation to the customer’s business which in turn helps the banks to manage their risks prudently.
The objective of the Reserve Bank of India’s KYC guidelines is to prevent banks being used, intentionally or unintentionally, by criminal elements for money laundering.
“Our investigation report is on our records now. There is not even a single transaction where KYC norms have not been complied with….
“When we investigated all accounts opened in that branch (large corporate branch, Delhi) and all transactions, we found that they have all been done exactly as per regulatory requirements. So, there is nothing wrong,” said Goyal.
ramkumar.k@thehindu.co.in
Source: thehindubusinessline
This move follows an undercover sting operation by online magazine Cobrapost at some of the branches of 30 banks and insurance companies, where officials allegedly offered to convert tax-evaded money into legitimate money.
According to R.K. Goyal, Executive Director, Central Bank of India, “Our bank’s chief security officer will call for video recordings of different branches on sample basis. Almost all our branches have CCTVs (closed circuit TVs).
“After going through the recordings, if the officer finds that something fishy is going on in any of the branches, the matter will be escalated to the top management.
“So, we are taking all steps (to prevent regulatory violations).”
In this regard, the public sector bank will select one branch under the jurisdiction of each of its 77 regional offices for the investigation. As of March-end 2013, it had 4,294 branches.
“This (investigation) will also send a message to the field staff that they should comply with know-your-customer (KYC) norms. Only then they should open accounts and allow transactions,” said Goyal.
Central Bank conducted an internal investigation at its large corporate branch in Delhi to check if violation of KYC norms, as alleged by the online magazine, had taken place.
KYC is a customer identification process.
It involves making reasonable efforts by banks to determine true identity and beneficial ownership of accounts, source of funds, the nature of customer’s business, and reasonableness of operations in the account in relation to the customer’s business which in turn helps the banks to manage their risks prudently.
The objective of the Reserve Bank of India’s KYC guidelines is to prevent banks being used, intentionally or unintentionally, by criminal elements for money laundering.
“Our investigation report is on our records now. There is not even a single transaction where KYC norms have not been complied with….
“When we investigated all accounts opened in that branch (large corporate branch, Delhi) and all transactions, we found that they have all been done exactly as per regulatory requirements. So, there is nothing wrong,” said Goyal.
ramkumar.k@thehindu.co.in
Source: thehindubusinessline
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