Technoglitch
Core Member
In 2013, news portal Cobrapost blew the lid off what it called a money laundering racket across a number of the country’s largest banks. Based on a sting operation, the website had uncovered violations of a number of basic banking rules, including know-your-customer (KYC) norms, anti-money laundering (AML) rules and the Foreign Exchange Management Act, 1999 (Fema). Given that these violations were spread across almost all big banks, the Reserve Bank of India (RBI) was forced to undertake a “thematic study” which confirmed the transgressions and resulted in a Rs.50-crore fine imposed on 22 banks.
It is certainly where an alleged Rs.6,000-crore money laundering fraud at Bank of Baroda began. It has been alleged that Rs.6,172 crore in funds have been laundered through a Bank of Baroda branch in New Delhi using provisions such as pre-payment for imports. This was done through multiple accounts that were opened over the past 6-12 months without adhering to KYC norms. While the Ashok Vihar branch of Bank of Baroda seems to be the centre of the racket, evidence is slowly emerging of other banks and bank officials playing a role. On Wednesday, the Enforcement Directorate arrested an HDFC Bank Ltd official for his involvement in the scam. According to a report inBusiness Standard, funds were transferred from 11 accounts in HDFC Bank to Bank of Baroda, which were eventually remitted overseas illegally.
Are bank frauds rising in India? - Livemint
It is certainly where an alleged Rs.6,000-crore money laundering fraud at Bank of Baroda began. It has been alleged that Rs.6,172 crore in funds have been laundered through a Bank of Baroda branch in New Delhi using provisions such as pre-payment for imports. This was done through multiple accounts that were opened over the past 6-12 months without adhering to KYC norms. While the Ashok Vihar branch of Bank of Baroda seems to be the centre of the racket, evidence is slowly emerging of other banks and bank officials playing a role. On Wednesday, the Enforcement Directorate arrested an HDFC Bank Ltd official for his involvement in the scam. According to a report inBusiness Standard, funds were transferred from 11 accounts in HDFC Bank to Bank of Baroda, which were eventually remitted overseas illegally.
Are bank frauds rising in India? - Livemint