HindustanTimes Mon,14 Jul 2014

23 banks accused of money laundering

HT Correspondent , Hindustan Times  New Delhi, May 06, 2013
First Published: 10:40 IST(6/5/2013) | Last Updated: 10:16 IST(7/5/2013)

Online portal Cobrapost on Monday accused as many as 23 public and private sector banks and insurance companies of “running a nation-wide money laundering racket” prompting the finance ministry, regulators and banks to initiate separate probes into the matter.


In a second-in-a-series of undercover video exposé — codenamed Red Spider Part 2 — Cobrapost alleged that several government-owned banks and insurance companies offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms and convert their black money into white, aiding illegitimate money laundering.

The exposé names companies such as Life Insurance Corporation (LIC), State Bank of India (SBI), Punjab National Bank, Bank of Baroda and a few private sector insurance firms.
“The financial services secretary has asked the  chairman cum managing directors (CMDs) for a detailed report on utmost priority with the name of the employee/designation and action taken,” a finance ministry statement said.

“The insurance companies concerned have been asked to file a report on the allegations. The matter is under examination and appropriate action will be taken at the earliest,” insurance sector regulator Insurance Regulatory and Development Authority (IRDA) said.

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