Finance ministry puts out list of 9,500 ‘high risk’ finance companies | India News – Times of India–26.02.2018

Highlights

  • Companies categorised ‘high risk’ found non-compliant to the Prevention of Money Laundering Act rules as on January 31
  • Many of these NBFCs were found converting banned currency notes after demonetisation by receiving cash as deposits and issuing back-dated FDs and cheques
The Financial Intelligence Unit (FIU) under the finance ministry has released a list of nearly 9500 non-banking financial companies (NBFCs) which have been categorised as ‘high risk financial institutions’.
The list released by FIU-India on its website shows the names of NBFCs which have been categorised ‘high risk’ and found non-compliant to the Prevention of Money Laundering Act rules as on January 31.
After the November 2016 demonetisation of Rs 500 and Rs 1,000 notes, NBFCs and several rural and urban cooperative banks had come under the scanner of the income tax department and the Enforcement Directorate for illegally converting banned currency notes of people who had unaccounted income.

Many of these NBFCs and cooperative banks were found converting banned currency notes by receiving cash as deposits and issuing back-dated fixed deposits and cheques despite the fact that the RBI had prevented them from taking such deposits.

via Finance ministry puts out list of 9,500 ‘high risk’ finance companies | India News – Times of India

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