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.
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.
Lax regulatory oversight of offshore financial centers and banks in developed countries is facilitating illicit financial activity in India, a Washington, D.C.-based advocacy group said Wednesday.
The new president of an influential intergovernmental organization that sets anti-money laundering standards will focus his tenure in part on recommending changes to compliance regulations to better service the unbanked.
Banks looking to curb costs by outsourcing their anti-money laundering duties should be cautious before signing on the dotted line with third-party vendors, say compliance experts.
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.
A UBS spokesman acknowledged Thursday that the Indian regulator scotched the deal because of concerns about UBS's compliance program.
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