After facing acute troubles in Geneva, Mauritius, Indian origin Hinduja Group-owned Hinduja Bank’s banking license is cancelled by Cayman Islands’ financial regulator for series of charges for money laundering. International journal Global Banking Regulation Review on Wednesday reported that the regulator Cayman Islands Monetary Authority (CIMA) had revoked Geneva-based Hinduja Bank’s banking license through May 27 dated notification.
Hinduja Bank was established in 1978 and became a Swiss-regulated bank in 1994. Hinduja Bank operates subsidiaries in Chennai, Dubai, London, Mauritius, Paris and New York. In India, Hinduja Bank operates through its subsidiary IndusInd Bank.
“The Cayman Islands’ financial regulator has revoked Geneva-based Hinduja Bank’s banking license for a string of anti-money laundering and governance lapses. The Cayman Islands Monetary Authority (CIMA)’s managing director Cindy Scotland announced the decision in a notice published on 27 May, taking effect five days earlier. Hinduja Bank’s Caymanian subsidiary repeatedly failed to maintain a net worth of a minimum of 400,000 Cayman dollars (US$488,000) (Rs.3.5 crore) and failed to release audited accounts for the last two consecutive years, according to the letter.
Hinduja Group controls Ashok Leyland, IndusInd Bank and Gulf Lubricants. The Indian origin conglomerate having business across the world was started by the late PD Hinduja in the early 1940s.
“CIMA found that Gilbert Pfaeffli, general director of Hinduja Bank, was ‘not a fit and proper person to hold the director position of a licensee,’ and said the bank also fell foul of regulations that require banks to maintain two directors at all times. The regulator also noted in the report that Hinduja Bank contravened several anti-money laundering (AML) regulations, saying the bank did not implement an AML policy and failed to appoint any money laundering reporting officers. It also failed to seek CIMA’s approval for the issue, transfer or disposal of shares in connection with an ‘alleged or proposed sale’ of the bank,” said Global Banking Regulation Review, quoting the regulator CIMA. According to the notification, the Cayman Islands’ Regulator CIMA issued a warning notice to Hinduja Bank on 21 January this year regarding the violations.
Three weeks back, a court in Geneva fined Indian industrialist Prakash Hinduja 157 million francs (Rs 1,270 crore) for tax violations. The Geneva Court imposed the fine on Hinduja for claiming tax exceptions by showing his Monaco residency, while he was actually living in Geneva. PGurus reported details of frauds committed by Prakash Hinduja.
Hinduja Group controls Ashok Leyland, IndusInd Bank and Gulf Lubricants. The Indian origin conglomerate having business across the world was started by the late PD Hinduja in the early 1940s. The Hinduja Group’s companies are controlled by holding companies situated in tax havens like Mauritius and Geneva. In February, the tribunals in Geneva and Mauritius also charged Prakash Hinduja’s son Ajay Hinduja for company law-related violations. The Hinduja Group controls their entire worldwide operations through holding companies in Mauritius.
PGurus have recently reported a series of reports on the original Bofors scamsters Hinduja family and their links with top Congress and BJP leaders, ultimately leading to hushing up of Bofors Scam.
 Hinduja Bank’s licence cancelled by Cayman over money laundering – Jun 03, 2021, The Pioneer
 Industrialist Prakash Hinduja fined 157 million francs (Rs.1270 crore) for tax violations by Geneva Court – May 16, 2021, PGurus.com
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