A diamond trading group tied to one of India's largest bank loan defaults is suing over allegations that the soured deal was part of an elaborate fraud that violated the country's anti-money laundering laws. In May, Winsome Diamonds and Jewellery Ltd. filed a lawsuit in Mumbai's high court accusing Israel-based diamond analyst Chaim Even-Zohar and his colleagues of slandering the business in a February editorial published in Diamond Intelligence Briefs. The article alleges that the group's Non-Executive Director Jatin Mehta may have orchestrated the receipt of nearly $1 billion in loans that he never intended to pay back. Seeking $1...
India's chief banking regulator last year handed down a record number for anti-money laundering and know-your-customer penalties, more than quadrupling enforcement actions levied during the prior year, according to bank statistics.
Federal regulators are likely to scrutinize banks that outsource their compliance duties in the wake of a $1 billion accounting scandal in India involving New Delhi-based Satyam Computer Services Ltd. It offered U.S. companies various services, including anti-money laundering compliance.
The Republic of India is likely to be the next nation to join the Financial Action Task Force, which sets global anti-money laundering standards, according to a report Monday by an Indian news organization.