The FinCEN files leak came at the worst time for the world which is already in dismay. Leaked documents show how the world’s biggest banks moved 2 trillion dollars dirty money around the world! Around 90 financial institutions appear in the documents, including many of the world’s biggest banks. 44 Indian banks figure in the FinCEN Files primarily because they are “correspondent banks” to the foreign banks that have filed these SARs.
Is it a surprise? Of course not. They have known issues. When banks deviate from the core purpose of existence such things are inevitable. A common man will tell you that banks will never lend money to genuine people or institutions. This perception is not a myth but very true because due diligence is only for the common man not for the so-called Big Kahunas and wilful defaulters.
The financial system is the backbone of the economic strength of a country and we are only hearing bad news over and again. While it may be a little early to conclude anything, the damage has already been done from the Trust standpoint.
Checks and balances are necessary to prevent and detect fraud. Let us hope for a robust checks and balances system that ensures no one can get away from doing wrongdoings.