HDFC Bank, Axis Bank announce fresh measures in money laundering probe

ICICI bank has suspended 18 employees

  HDFC Bank also said it will carry out “special audit of some of its branches” where the videotaping was done. Photo: Abhijit Bhatlekar/Mint 

Mumbai: HDFC Bank Ltd and Axis Bank Ltd said they have initiated inquiries and suspended employees to limit the damage done by the Cobrapost.com exposé on Thursday.

In a email statement HDFC Bank said it had appointed audit firm Deloitte Touche Tohmatsu India Pvt. Ltd “to carry out an independent forensic enquiry into the allegations and reported statements, as made by Cobrapost representatives”. It had also suspended the 20 employees seen in the video exposé, a bank official said.

HDFC Bank has also hired law firm Amarchand & Mangaldas & Suresh A Shroff & Co “to examine the breaches, if any of the bank’s code of conduct and ethical standards, by any bank officials”. Both the firms will work in association with the bank’s internal departments “to verify the truth or untruth or correctness, as the case may be, in the reported tapings of bank officials”, HDFC Bank said.

In a separate statement also on Saturday, Axis Bank said it had “advised” 16 employees “to report to respective administrative offices pending the enquiry”.

“These employees will not be allowed to do any work related to customers till the inquiry is completed,” a bank spokesman said.

“A senior-level committee has been constituted to monitor and supervise the entire investigation process on a daily basis.A thorough internal enquiry is already underway to look in to all aspects of the matter and the findings are expected shortly,” Axis Bank said in an emailed statement.

HDFC Bank, Axis Bank and ICICI Bank are facing questions over their internal procedures after a sting operation video by Delhi-based website revealed that some bank employees had helped people with illegal money laundering activities.

The exposé by cobrapost.com has forced all three banks to release statements announcing an internal probes on Thursday. Late on Friday ICICI said it had suspended 18 employees pending inquiry after forming a high level committee within the bank to investigative the allegations.

HDFC Bank also said it will carry out “special audit of some of its branches” where the videotaping was done.

“This process has been initiated without prejudice to the authentication of the video recordings or electronic data. 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,” HDFC Bank said.

 

TOUHID HUSSAIN

PGDM 2nd SEM