RBI not sharing bank inspection reports with intelligence agencies
Moneylife Digital Team 03 March 2015

In the Economic Intelligence Council meeting, the chief of CEIB reportedly said that RBI had initially agreed to share extracts of the inspection reports on banks but later on, had changed its stand

 

The Reserve Bank of India (RBI) has refused to share its reports on banks’ inspection on alleged money laundering laws and other violations with the Central Economic Intelligence Bureau (CEIB), citing legal hurdles.
 
The RBI was required to share relevant extracts of inspection reports with law enforcement agencies and CEIB, an apex intelligence agency under the Finance Ministry, to check black money and other financial crimes where gross violations of know your customer (KYC) guidelines and Prevention of Money Laundering Act (PMLA) are noticed, official sources said.
 
It had earlier given an assurance about sharing information relating to the Foreign Exchange Management Act (FEMA) violations with CEIB, which they share with the Enforcement Directorate (ED), they said.
 
But the central bank has not been sharing such information, the sources said.
 
The matter of non-sharing of inspection reports by RBI with CEIB was discussed during a recent meeting of the Economic Intelligence Council (EIC) headed by Finance Minister Arun Jaitley.
 
At the meeting, it was highlighted by the CEIB chief that while RBI had initially agreed to share the extracts of inspection reports with it, later on, they changed their stand.
 
RBI has cited “legal impediments” in sharing the reports with CEIB as it is not a statutory body; the sources said quoting the minutes of the meeting. 
 
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