rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Sebi issues money laundering warning for 10 nations

Sebi issues money laundering warning for 10 nations

Last updated on: July 19, 2011 17:54 IST

Sebi issues money laundering warning for 10 nations

     Next

Next

After cautioning Indian markets about possible money laundering and terror-funding risks from Iran and North Korea, market regulator Sebi has issued a warning for funds from eight more countries, including Turkey and Ethiopia.

A similar warning could be issued soon by the Reserve Bank of India to banks and financial institutions seeking caution in dealings with entities and funds related to the eight nations, which also include Bolivia, Cuba, Kenya, Myanmar, Sri Lanka and Syria.

The Sebi warning follows a global caution notice from the Financial Action Task Force, the global oversight and policy-framing body for rules to combat money laundering and terror funding risks to international financial markets.

The FATF periodically issues such public notices to various foreign governments, which subsequently forward the same to their respective financial regulators.

Click NEXT to read on . . .


Image: (Inset) U K Sinha, the new Sebi chairman.
Photographs: Reuters
     Next

Sebi issues money laundering warning for 10 nations

Prev     Next
Prev

Next

FATF has previously also issued such warnings for risks attached with Iran and North Korea and the subsequent caution notices have been issued by Sebi and RBI.

In the latest warning dated June 24, the FATF has again cautioned against Iran and North Korea, seeking 'counter-measures to protect international financial system from the ongoing and substantial money laundering and terrorist financing risk emanating' from these countries.

At the same time, FATF also listed out Bolivia, Cuba, Ethiopia, Kenya, Myanmar. Sri Lanka, Syria, Turkey as countries with strategic deficiencies in their rules to combat money laundering and terror funding.

Click NEXT to read on . . .


Photographs: Reuters
Prev     Next

Sebi issues money laundering warning for 10 nations

Prev     More
Prev

More

FATF said these eight countries 'have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies'.

After the Indian government forwarded the FATF warning to the Securities and Exchange Board of India, the regulator asked the stock exchanges to take note of the same through a letter dated July 12.

The stock exchanges, in turn, asked the market entities today to take note of the FATF warning and ensure compliance.


Photographs: Reuters
Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.