RIB's fine is related to the company's shortcomings and responsibilities as a payment system operator.
Visa Worldwide and Ola Financial Services also fined by RIB
RBI also imposed fines of USD 39.891 on Ola Financial Services and USD 286.622 on Visa Worldwide for regulatory violations.
According to the central bank, Visa Worldwide implemented a payment authentication system without obtaining prior approval from the RBI. Subsequently, following a notice and a review of Visa's response, along with its request to compound the violation, the RBI concluded that the offense could be compounded.
Manappuram Finance and Ola Financial Services were discovered to have violated KYC guidelines. This follows Manappuram Finance's disclosure regarding a possible USD 2.388.712 fraud carried out by an employee at its subsidiary.
To address the fraudulent behaviour within the subsidiary, Manappuram Finance has filed a complaint with the Valapad Police Station and enlisted KPMG to conduct a comprehensive investigation. Despite this incident, Manappuram Finance has reassured stakeholders that its financial position has not been affected beyond the penalty.
Adapting to a changing regulatory environment
The tightening of KYC and AML regulations is now a global trend, compelling numerous organisations – ranging from legal and accounting firms to banks and other financial institutions – to adapt to evolving compliance standards. In Europe, for instance, the European Banking Authority (EBA) has issued fresh guidelines on remote customer onboarding that affect all credit and financial institutions governed by the Anti-Money Laundering Directive (AMLD).
Businesses of all natures need to fully understand their particularities to find the right guides and experts to help them cover all aspects of KYC requirements and standards.
