Wednesday, April 14, 2021

Cayman Islands revokes Hinduja Bank’s licence over anti-money laundering breaches, mismanagement


The Cayman Islands Monetary Authority has revoked the banking licence of Hinduja Bank.

The Cayman subsidiary of the Geneva-based private bank is likely to become insolvent, has contravened anti-money laundering rules, and not been managed in a fit and proper manner, according to a decision notice by the regulator.

The notice revoking the banking licence as of 22 May also stated that Hinduja Bank’s director Gilbert Pfaeffli is not a “fit and proper” person to hold this position.

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The decision dated 27 May was sent to Pfaeffli by email citing a previous warning notice issued by CIMA on 21 Jan.

The regulator said the bank had failed to seek its approval for the issue, transfer or disposal of shares in connection with an “alleged or proposed sale” of the bank.

The bank had repeatedly failed to maintain a net worth of at least $400,000 and not submitted audited accounts for the years 2018 and 2019. Hinduja had also failed to maintain at least two directors, CIMA said.

In addition, the bank had breached anti-money laundering regulations by not preparing adequate AML polices and procedures and not appointing a Money Laundering Reporting Officer and Deputy Money Laundering Reporting Officer.

Hinduja Bank is part of the Mumbai-headquartered Hinduja Group, an Indian conglomerate with a portfolio of holdings in ten different industries and a direct presence in 38 countries.

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