MUMBAI: At least forty middle level bankers at the top three private sector lenders Axis Bank, HDFC BankBSE -1.67 % and ICICI BankBSE -3.93 %
face an uncertain future as they are either suspended or stripped off
their roles pending inquiry into alleged money laundering.
Axis BankBSE -0.90 % directed 16 of its staff caught in sting operation to report to their administrative office that suggested violation of various laws, HDFC Bank hired auditors Deloitte Touche Tohmatsu India Pvt Ltd to audit the branches, and ICICI suspended 18 pending the outcome of an internal inquiry.
Axis Bank's internal enquiry is already underway to look in to all aspects of the matter and the findings are expected shortly,'' a statement said. Pending the enquiry, the Bank has advised 16 concerned employees to report to respective administrative offices. A senior level committee has been constituted to monitor and supervise the entire investigation process on a daily basis.''
The top private banks and various investigating agencies, including the regulator Reserve Bank of India are probing whether the banks and their staff helped people evade taxes, siphon off funds and help launder money. The probe follows a sting operation by Cobrapost.com., an online news provider, which showed bankers suggesting ways to circumvent law.
The country's second largest private sector bank, HDFC Bank has hired Amarchand & Mangaldas & Suresh A Shroff & Co to examine the breaches, if any of the bank's code of conduct & ethical standards, by any bank officials.
The bank will also conduct special audit of some of its branches, where the reported videotaping was done. This is being done without prejudice to the authentication of the video recordings or electronic data,'' HDFC Bank said.
The Bank is also detailing the efficacy of induction and ongoing training provided for ingraining ethical behaviour and conduct rules, as preventive and protective measures.
Rajiv Tukru, secretary, department of financial services, said that the government would come up with strict penalties if these banks were found violating guidelines.
All government agencies and regulators are working together to probe charges. In case violations are found, there would be a very severe reaction and we would come down with a very heavy hand,'' said Tukru.
The internal and external audits and inspections undertaken previously, and the action taken reports in this regard are being compiled and reviewed once again, to enable the Bank to reiterate that the internal checks and balances and processes for ensuring compliance with KYC norms and for prevention and detection of, and protection against money laundering activity are robust and adequate,'' said the bank.
Axis BankBSE -0.90 % directed 16 of its staff caught in sting operation to report to their administrative office that suggested violation of various laws, HDFC Bank hired auditors Deloitte Touche Tohmatsu India Pvt Ltd to audit the branches, and ICICI suspended 18 pending the outcome of an internal inquiry.
Axis Bank's internal enquiry is already underway to look in to all aspects of the matter and the findings are expected shortly,'' a statement said. Pending the enquiry, the Bank has advised 16 concerned employees to report to respective administrative offices. A senior level committee has been constituted to monitor and supervise the entire investigation process on a daily basis.''
The top private banks and various investigating agencies, including the regulator Reserve Bank of India are probing whether the banks and their staff helped people evade taxes, siphon off funds and help launder money. The probe follows a sting operation by Cobrapost.com., an online news provider, which showed bankers suggesting ways to circumvent law.
The country's second largest private sector bank, HDFC Bank has hired Amarchand & Mangaldas & Suresh A Shroff & Co to examine the breaches, if any of the bank's code of conduct & ethical standards, by any bank officials.
The bank will also conduct special audit of some of its branches, where the reported videotaping was done. This is being done without prejudice to the authentication of the video recordings or electronic data,'' HDFC Bank said.
The Bank is also detailing the efficacy of induction and ongoing training provided for ingraining ethical behaviour and conduct rules, as preventive and protective measures.
Rajiv Tukru, secretary, department of financial services, said that the government would come up with strict penalties if these banks were found violating guidelines.
All government agencies and regulators are working together to probe charges. In case violations are found, there would be a very severe reaction and we would come down with a very heavy hand,'' said Tukru.
The internal and external audits and inspections undertaken previously, and the action taken reports in this regard are being compiled and reviewed once again, to enable the Bank to reiterate that the internal checks and balances and processes for ensuring compliance with KYC norms and for prevention and detection of, and protection against money laundering activity are robust and adequate,'' said the bank.
ABDUL WAHEED
PGDM 2nd SEM.
IIMT COLLEGE OF MANAGEMENT
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