HDFC, ICICI bank targeted in money laundering sting ops
Here is how CobraPost alleges private banks laundered money

Corporate Mar 14, 2013

ICICI Bank sets up committee to probe money laundering allegations

By Firstbiz Staff

Following a sting operation conducted by online magazine Cobrapost across various branches of private financial institutions which revealed that bank employees are accepting black money from customers to convert it into white ICICI Bank said it has set up a high-level inquiry panel to probe the matter, the findings of which will be submitted in two weeks.

Deeply concerned by the reports, ICICI Bank said it follows a zero-tolerance policy towards violation of regulatory norms.

The sting operation shows that the banks have violated various sections of the Income Tax Act, FEMA, RBI and Anti-Money Laundering Act

"ICICI Group conducts its business with the highest level of compliance to legal and regulatory requirements. All employees of the Group are trained and required to adhere strictly to the Group Code of Conduct, including AML and KYC norms. We are deeply concerned with the media reports. We want to assure our customers and all our other stakeholders that we are committed towards adherence to the high standards of business conduct, which is expected of us. We have constituted a high level inquiry committee to investigate into the matter and submit its findings in 2 weeks," the bank said in a statement.

Cobrapost claims that the nationwide operation shows how private banking and insurance affiliates launder money as part of standard procedures.

The sting also shows that money laundering services are openly being offered to walk in customers who wish to launder their money.

by Firstbiz Staff

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