Penalty for inaccurate financial transaction reporting may be directed where due diligence fails or inaccuracies are not corrected promptly. Section 271FAA penalises persons required by clause (k) of section 285BA to furnish statements of financial transaction or reportable account who provide inaccurate information due to failure of the prescribed due diligence or deliberately, who know of inaccuracies at filing and do not inform the prescribed authority, or who discover inaccuracies after filing and fail to inform and furnish correct information within the time specified under section 285BA(6); the prescribed income tax authority may direct payment of a specified penalty.