Axis Bank has been fined over ₹1.66 crore by the Financial Intelligence Unit (FIU) for not having adequate mechanisms to detect and report suspicious transactions. This action follows an incident involving a fraudulent account in the name of the National Security Guard (NSG) at one of its branches. A bank manager is alleged to have been part of a major fraud and corruption scandal linked to this case. The FIU's summary order highlighted the bank's failure to prevent such illicit activities, leading to the significant penalty.