Author:
Publication: The New Indian Express
Date: October 27 2004
It was the American intelligence
agencies probing into the 9/11 terrorist attacks that first intercepted
the rampant misuse of Indian banking channels for transferring huge
chunks of money from one country to another.
Top sources told this website's
newspaper that the US investigators had zeroed in on a transaction
amounting about Rs 600 crore that had been sent to the New York branch
of the State Bank of India from the UAE in violation of laid down
guidelines.
Though there was no conclusive evidence
to prove that this amount had reached the al Qaeda network, US agencies
strongly believe that this amount was part of the terror funding
funnelled into America by Laden men.
Following this, a huge fine was
slapped on the SBI for not following strict norms that would possibly
have prevented the transaction, sources said. The fine is estimated
to be around US$ 100,000. An alert was also sent to India spurring
intelligence agencies to launch a probe into the issue, which eventually
led to the unearthing of transactions through five leading banks
and several co- operative banks in North Kerala.
The Reserve Bank of India, sources
said, has already completed its investigation into the role played
by banks in Kerala. ``They've definitely erred. Even basic norms
were not followed while entertaining huge transactions. The RBI will
have to issue more stringent norms to insulate the system from similar
possible misuse,'' sources said.
The RBI, while pulling up officials
of all banks that figure in the Centre's list, has also penalised
them with huge fines. ``All banks have paid the fine. They've also
given an undertaking that henceforth RBI guidelines would be strictly
adhered to,'' sources said.
The RBI, meanwhile, has introduced
an elaborate `know your customer' format with a view to preventing
any more goof-up.
SEAFOOD COMPANIES NOT REGISTERED:
In a related development, the Marine Products Export Development
Authority (MPEDA) has found out that none of the seafood companies
that figure in hawala list has been registered with it. The Home
Ministry had revealed the names of Good Luck Seafood, Mumbai, and
Kozhikode-based National Seafood, Western Seafood, Oasis Corporation,
United Seafood, and Asiatic Agency as those figuring in the list.
``We've checked through our offices
in Mumbai and Kozhikode. None of these companies is registered. The
MPEDA is not a regulatory authority. We'll come into the picture
only if any export-related complaints are raised,'' MPEDA sources
said.
``The practice of laundering money
through front companies is a time- tested strategy. We've inputs that this
was resorted to even during the days of the Soviet Union to bring
in funds for the Communist parties. But this episode once again shows
how such devices can still be relied on for laundering money,'' sources
pointed out.
