Cobrapost: Money Laundering Allegations on ICICI bank, Axis Bank and HDFC Bank

Cobrapost Allegations

Cobrapost: Money Laundering Allegations on ICICI bank, Axis Bank and HDFC Bank

Cobrapost: Money Laundering Allegations on ICICI bank, Axis Bank and HDFC Bank

Mumbai: Cobrapost internal portal made allegations against HDFC Bank, Axis Bank and HDFC Bank. It alleged that these banks are running nationwide laundering racket.  The portal alleges that these banks are using their network in and outside the country to convert the black money into white.  The portal said they have every evidence to prove these allegations.

Anirudh Bahal who worked in Tehelka earlier promoted Cobrapost portal.  The reporters of this portal conducted sting operation on ICICI bank, HDFC bank and Axis bank.  The sting operation was conducted by the name Operation Red Spider.  The reporters approached senior officers of this bank in twenty cities in India.  They informed them that they have crores of rupees of black money with them.  Senior authorities of three banks agreed to help change black money into white, they informed.  The authorities explained how the money can be brought into main stream through various investment schemes.  Cobrapost published put the video of the conversations with bank authorities in the website.  Finance minister Chidambaram informed that two banks denied the charges.

Central Board of Investigation announced that they have taken these allegations seriously and began investigation.  RBI also announced that they are gathering information relating to the allegations of Cobrapost.  The three banks which are facing allegations however denied them and announced that internal enquiry is ordered on these allegations.

Conversion of black money into white is done in three stages.  The first stage is known as placement.  This is to bring the black money into the market.  second stage is layering.  Third stage is integration.  Banks are not following any rules to open account for the purpose of converting black money into white.  They do not even follow the PAN card or Know Your Customer rules.  Black money will be invested in various insurance schemes and also in gold through the accounts opened by the banks.  Crores of rupees are divided into small amounts and deposited in the accounts.  Black money is converted into white through these accounts.  Accounts thus opened will be closed after the completion of their task.

Cobrapost is alleging that banks are ready to bring the black money if the amount is huge from the home of the customers.  Form 60 is used to receive the deposit.  To help clients take the black money out of the country, non resident external and non resident ordinary accounts are also used.

Following the allegations of Cobrapost about money laundering in banks, the shares of Axis bank, ICICI ban and HDFC Bank fell on Friday.  the three banks denied the charges and they also ordered investigating the charges.