The CVC has asked RBI and Indian Banks’ Association (IBA) to red-flag multiple transactions of smaller amounts from a single account and ensure compliance of KYC norms to check fraudulent forex transactions in the wake of alleged Rs6,100 crore foreign remittance scam through Bank of Baroda, a top official said on Friday.
“We have written to Reserve Bank of India (RBI) to say that if smaller forex transactions of less than one lakh dollars are being made than it should come to your notice,” Vigilance Commissioner TM Bhasin told reporters here.
He said similar communication has been sent to IBA chief, saying there may be “attempts to camouflage generation of alerts by sending small amount of money through multiple transactions of foreign exchange abroad.
We have told RBI and IBA that they should tell banks to red flag transactions of smaller amount from one account.”At present, an alert is generated only when foreign exchange (forex) remittance is over one lakh dollars.