Bank Of Baroda To Shut Gupta Accounts

Reports say the bank is closing the Gupta accounts to comply with banking rules.
The Bank of Baroda headquarters is pictured in Mumbai, India, April 27, 2016. REUTERS/Danish Siddiqui
The Bank of Baroda headquarters is pictured in Mumbai, India, April 27, 2016. REUTERS/Danish Siddiqui
Danish Siddiqui / Reuters

The Bank of Baroda has become the fifth bank to close the bank accounts of the Gupta family, Business Day reported on Friday.

First National Bank, Nedbank, Absa, Standard Bank and the Bank of China have already closed the Gupta's accounts.

Now, the Bank of Baroda will reportedly close the accounts by the end of March following pressure from its parent company in India. According to Business Day, Baroda is contractually bound to close the accounts.

Its parent company is reportedly a member of the Financial Action Task Force (FATF), along with China and South Africa.

The FATF was established to combat money laundering and terrorist financing, the paper said.

Oakbay Investments, one of the Gupta's companies, told Business Day that this was more evidence of a "smear campaign" against the family aimed at putting pressure on the bank.

The Gupta's family lawyer, Gert van der Merve, told Business Day that the family had not received notice of closure from the Bank of Baroda.

Meanwhile, sources told Bloomberg that the bank was ending its relationship with the Guptas to make sure it complied with banking regulations.

The Bank of China closed the Gupta accounts in February saying the family posed a "political risk" to the bank.

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