Reserve Bank has Bank of Baroda in its sights

The SA Reserve Bank has finalised an inspection of money-laundering controls at the Bank of Baroda’s Johannesburg branch after the Asset Forfeiture Unit obtained a preservation order freezing more than R110m held at the bank. A Business Day report notes the Bank of Baroda is already flirting with a shutdown of its operations as further breaches of the Financial Intelligence Centre Act (Fica) come to light. ‘The inspection of the Bank of Baroda Johannesburg Branch in terms of Fica has become a matter of public record through a recent court case,’ said Kuben Naidoo, deputy governor of the Reserve Bank. ‘On that basis, we can confirm that the outcome of the inspection conducted at Bank of Baroda Johannesburg to assess its compliance with Fica has not yet been finalised.’ Manoj Kumar Jha, acting CEO of the Bank of Baroda in SA, referred to the inspection in court papers defending its decision to close the bank account of the Gupta group of companies in 2017. In the court papers, Kumar Jha said the Reserve Bank had conducted the inspection during 2016 and imposed a R10m fine on the Bank of Baroda for failing to comply with Fica’s requirements.