Cobrapost exposé: Govt begins probe, orders action
7 May 2013 7:42 AM IST
As many as 23 public and private sector banks and insurance companies were on Monday accused of ‘running a nation-wide money laundering racket’ by online portal Cobrapost, prompting the finance ministry and regulator IRDA to initiate independent investigations into the matter.
Cobrapost accused several banks and insurance companies of ‘running a nation-wide money laundering racket, blatantly violating laws of the land’. Those named in the expose include SBI, LIC, Punjab National Bank (PNB), Bank of Baroda, Canara Bank, Reliance Life, Tata AIA, Yes Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, Dhanlaxmi Bank, Federal Bank, DCB Bank and Birla Sun Life.
Cobrapost alleged that the financial sector entities offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms, convert their black money into white and obtain fictitious PAN cards.
‘In its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers,’ the portal said in a release.
The financial services secretary Rajiv Takru asked the heads of state-owned banks and LIC to take action against employees ‘appears to be advising’ customers on ways of violating KYC and other regulatory norms.
Cobrapost accused several banks and insurance companies of ‘running a nation-wide money laundering racket, blatantly violating laws of the land’. Those named in the expose include SBI, LIC, Punjab National Bank (PNB), Bank of Baroda, Canara Bank, Reliance Life, Tata AIA, Yes Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, Dhanlaxmi Bank, Federal Bank, DCB Bank and Birla Sun Life.
Cobrapost alleged that the financial sector entities offered to open bank accounts and lockers for customers without following Know Your Customer (KYC) norms, convert their black money into white and obtain fictitious PAN cards.
‘In its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers,’ the portal said in a release.
The financial services secretary Rajiv Takru asked the heads of state-owned banks and LIC to take action against employees ‘appears to be advising’ customers on ways of violating KYC and other regulatory norms.
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