Citi watchdog took 15 months to detect scam

The Compliance and Control (C&C) department of Citibank, responsible for keeping an eye on the potential irregularities and misdeeds of its staff, had failed to spot malpractices committed by its relationship manager Shivraj Puri.

The Compliance and Control (C&C) department of Citibank, responsible for keeping an eye on the potential irregularities and misdeeds of its staff, had failed to spot malpractices committed by its relationship manager Shivraj Puri. The officials of this department could face action after the internal inquiry to be conducted at a later stage.

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C&C officials have been busy in helping the police and other investigating agencies in the on-going investigation. According to bank sources, the focus at present was on revealing the facts related to the illegitimate transactions happened through suspended relationship manager Shivraj Puri.

Although Puri had opened accounts in the name of his maternal grandparents and his mother in September 2009 and sent small amounts to these accounts, the C&C failed to detect it. Bulk transactions to the tune of R100 crore had started flowing into these accounts in October and continued till the end of November. But the C&C department could spot the scam only in December.

The bank officials said the C&C department, which is a sort of intelligence wing of the organisation, was busy in assisting the police department. The bank would decide on the course of action after the police investigation is over.