NEWS & ADVICE : CAR LOANS
NBFCs issued alert by RBI against money muling
By Vaibhav Aggarwal
Apr 7, 2011
Print    Email    RSS   

Alerts have been generated by Reserve Bank of India to all non banking finance companies (NBFCs) against money laundering activities of fraudsters. The NBFCs have been asked to be careful against scammers using third party deposit accounts on illegal basis by what is known as money muling. The third party here acts as money mules.

The NBFCs have been advised to strictly adhere to 'Know Your Customer' norms as a preventive against any illegal usage of their schemes.

"In some cases these third parties may be innocent while in others they may be having complicity with the criminals," RBI noted.

In case of a money mule transaction, one person who has an account with the bank is made a money mule. He receives funds in his account and then transfers them to the account of the scammer after a certain commission. An individual can be made a money mule without his knowledge and often people also choose to be the same.

Money mules are hired by various methods like spam e-mails, advertisements on genuine recruitment web sites, social networking sites, instant messaging and advertisements in newspapers.


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs # 8
A chronicle of excesses by loan recovery...
J&K Bank raises PLR
Tata Nano: How would Bank Loans look
Effect of employment on loan eligibility...


Hello I am looking to renew my car insurance and I...
my loan no
Lonavala Caℓℓ Girℓs 9765946980 / 9970712349...

NEWS THIS WEEK
SBH bank extended its Car and gold loan campaign till 31st March, 2015. Feb 11, 2015
KVGB bank signed MOU with TATA Motors Feb 10, 2015
SBH bank extended its scheme offering concession to loan defaulters Feb 2, 2015
Karnataka Bank tied up with TVS motors to Assist Auto rickshaw buyers Jan 27, 2015
RBI extended the Directions issued to Amanath Co-operative Bank for a period of six months Jan 22, 2015
News Archive