The Financial Intelligence Unit of India (FIU-IND) has imposed a fine of ₹37 lakh on Union Bank of India. This penalty was given because the bank did not properly report suspicious transactions that took place during the years 2011 to 2014.
According to a statement made by Union Bank in a regulatory filing on Wednesday, the bank admitted the issue and said that it has already taken the necessary preventive steps to ensure such mistakes do not happen again in the future.
The FIU issued its official order on April 15, stating that the fine was due to discrepancies found in the reporting of suspicious activities during the mentioned period. These reports are important for keeping track of illegal or doubtful financial transactions, and banks are required to report them properly. Failure to do so can lead to regulatory action, as seen in this case.
