My father worked as a bank employee and would often share some banking terms with us. I learned from him about tipping-off in banking; hence, I can share a brief about it. Tipping off in banking happens when someone warns a customer about an upcoming investigation or regulatory action, which is illegal. This gives the person a chance to hide funds or avoid scrutiny, damaging the investigation's effectiveness. RBI has made it mandatory and restricts bank officials or employees from indulging in any sort of tipping-off to the customer at any cost.
What is Tipping Off in Banking Meaning?
Tipping off in banking is a prohibited act that happens when someone at the bank secretly informs a customer about an upcoming investigation. It's illegal because it allows the person to move or hide their money before authorities can step in.
As per the Prevention of Money Laundering Act (PMLA), tipping off is considered an offence and can even lead to prison time.
This is the simple meaning of tipping off in banking and I hope you have understood it well.
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What is Tipping Off in Banking?
Kinjal
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8 months
2024-09-30T15:55:44+00:00 2024-09-30T15:55:45+00:00Comment
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