ICICI Bank suspends 18 in money-laundering probe

MUMBAI Sat Mar 16, 2013 2:52pm IST

1 of 2. Customers use ATM machines at an ICICI Bank branch in Mumbai January 30, 2013.

Credit: Reuters/Vivek Prakash/Files

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MUMBAI (Reuters) - ICICI Bank Ltd (ICBK.NS), India's No. 2 lender, has suspended 18 employees pending an inquiry into suspected money laundering, the bank said in a statement on Saturday.

The move comes after a report by an independent journalist who said on Thursday he had video footage of some branch employees of ICICI Bank, HDFC Bank Ltd (HDBK.NS) and Axis Bank Ltd (AXBK.NS) suggesting to an undercover reporter methods of laundering money.

HDFC Bank said it would appoint audit firm Deloitte Touche Tohmatsu India Pvt Ltd to carry out an independent forensic inquiry.

The bank also appointed Amarchand & Mangaldas & Suresh A Shroff & Co to examine whether there had been any breaches of the bank's code of conduct.

Axis Bank said an internal inquiry was already under way.

The finance ministry and the Reserve Bank of India are also investigating allegations of money laundering at the top private sector lenders.

(Reporting by Swati Pandey and Kaustubh Kulkarni; Editing by Nick Macfie)

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Comments (4)
VCwithValueS wrote:
The policy makers will formulate a system with certain do’s and donot’s.The implementation junta over a period of time will automatically identify different ways and means of going around the system the policy makers cannot dream of.The policy makers or mgmt should have a follow up process to carefully monitor,system of checks.On paper the auditors may not get much to do with,the probe should identify the origins of the money from the depositors or investors and their source of income.Even if auditors find something,what is the point in punishing only those who were caught on the tape,the ways and means are well known to every branch either on tape or off tape.Even after this incident bankers will meet the clients at their homes in the after hours and arrange the cash to be deposited into the accounts on a periodic intervals by third party,how will the policy makers or the auditors or the management or the sting operations trace on? Ideally the banker should have been truthful?even if we restrict them by imposing new policies eventually there will be newer round about ways either we like it or not.The origins of the money by the depositors or investors should be declared by them before they deposit cash into their accounts.No accounts without pan.No deposits without accounts.No deposits after account is closed.No deposits into fictitious accounts.No transaction either cash or cheque without aadhar,Pan whatever is the amount, incl small amounts.

Mar 16, 2013 4:07pm IST  --  Report as abuse
CommunalAward wrote:
Legalize money laundering

Mar 16, 2013 11:10pm IST  --  Report as abuse
VCwithValueS wrote:
People are surprised after watching the sting operation done by cobrapost, watch the videos on www.cobrapost.com, the basic funda of educated rich Indian is to feel pride in finding round about ways to grow richer.

Mar 16, 2013 8:38am IST  --  Report as abuse
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