India's Bank of Baroda has signalled its exit from South Africa after alerting the registrar of banks.
The Bank of Baroda is leaving South Africa after its involvement in Gupta and Zuma scandals
The Indian bank has outlets in Ghana and Kenya as well
The Indian bank has been at the heart of a scandal involving the powerful Gupta family's whose relationship with the president of South Africa, Jacob Zuma has shocked the country and is leading to the exit of Zuma.
“The Registrar, which is part of the South African Reserve Bank (SARB), is in discussions with the Bank of Baroda to ensure its orderly withdrawal from South Africa so that no depositor is disadvantaged,” the central bank said in a statement.
The issue and its subsequent investigation seems to have led to the decision by the bank to withdraw its business from South Africa.
In India, the bank has also been asked to clarify to authorities the extent of its involvement in the South African scandal.
“Many of these allegations are on historical transactions and the bank has since then significantly improved the compliance process and these remediation measures would ensure that KYC/AML (Know Your Customer/Anti-Money Laundering) are completed to fullest satisfaction of internal review an...” it said in the statement. Further, the bank said it will keep stock exchanges updated about any significant outcome of these investigations.
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