Punjab National Bank (PNB) has informed that an Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) has imposed a monetary penalty of ₹15.37 crore on the bank.
According to PNB, the penalty is linked to an appeal (Appeal No. FPA-PMLA-3175/DLI/2019) filed by the bank against an earlier order dated July 29, 2019. That order was issued by the Financial Intelligence Unit – India (FIU-IND) under Section 13 of the Prevention of Money Laundering Act (PMLA), 2002. The penalty has been imposed as the bank did not monitor suspicious transactions properly. The case relates to a compliance review for the period between April 1, 2016 and November 30, 2017. The authorities found gaps in compliance procedures during that period. PNB stated that after this review period, it had already put corrective measures in place and strengthened its internal systems.
In 2019 also, the Financial Intelligence Unit (FIU-Ind) had imposed a penalty of Rs 15.62 crore on state-owned Punjab National Bank (PNB) for breaching anti-money laundering rules. FIU said that PNB not only failed to submit threshold-based transaction reports but also did not file suspicious transaction reports accurately. The FIU said PNB failed to identify and verify beneficial owner in accounts of several of its customers. The Bank failed to record suspicious pattern where multiple transactions just below the threshold were carried out by walk-in customers. The PNB also failed to carry out risk assessment and to identify and assess its money laundering and terrorist financing risk for products, services and delivery channels.
Penalty details and communication timeline
- Penalty imposed: ₹15,37,50,000 (₹15.37 crore)
- Earlier order by FIU-IND: 29 July 2019
- Final Appellate Tribunal order: 13 November 2025
The bank received the appellate order on November 13, 2025.
No impact on PNB’s financial position, says bank
Despite the monetary penalty, PNB clarified that the fine will not affect its financial health or day-to-day operations. The bank stated:
“There is no material impact on financial position and no impact on the operations of the Bank.”
Background: Why FIU penalises banks
The Financial Intelligence Unit investigates banks and financial institutions for violations related to anti-money laundering rules, reporting delays or failures and suspicious transaction monitoring. Banks that do not meet compliance standards can face monetary penalties.
-
-
-
-
-
-
-
-
-
-
-
-
