PNB scam: Mauritius promises to take regulatory action against offenders

In connection with the alleged Rs 12,600crore fraud at the state-run Punjab National Bank (PNB), also involving overseas branches, Mauritius has promised regulatory action against individuals or entities found to be linked with “fraudulent practices”.

Taking cognizance of media reports about the PNB fraud by accused diamantaire Nirav Modi and his uncle Mehul Choksi, the Financial Services Commission (FSC) of Mauritius has said in a statement that it is in constant communication on the matter “with its international counterparts under existing exchange of information agreements”.

“FSC will take necessary regulatory action against any of its licensee/approved Officer/Management Company found to be linked with any illegal, harmful and/or fraudulent practices that may cause any prejudice to good repute of Mauritius,” it said.

“The FSC is assessing the reported information and is closely monitoring the matter in collaboration with the Bank of Mauritius, the Mauritius Revenue Authority and the Financial Intelligence Unit,” said the Mauritius’ regulator of non-banking financial services and global business sectors.

The PNB scam involved using Letters of Undertaking (LoUs) issued in favour of the accused by bank employees who misused their access to ther bank’s SWIFT electronic messaging system used for overseas funds transfers.