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Around 23 pvt and PSU banks involved in money laundering: Cobrapost

According to the expose, banks provide facilities to customers such as multiple lockers and machines to count money. For money laundering, banks enable creation of forged pan cards and multiple accounts

May 06, 2013 10:11 IST | India Infoline News Service
Investigative journalist and editor of digital magazine Cobrapost, Aniruddha Bahal released a new set of secret recordings to expose irregularities in the Indian financial and banking system.

The online portal Cobrapost alleged that there was violation on PMLA (Prevention of Money laundering Act), KYC (know your customer) and banking norms.

According to Bahal, money laundering is done via virtual products. Around 23 private and PSU banks are involved in money laundering.

Cobrapost named Andhra politician Sailijanath Saake in money laundering expose and also alleged that senior bank executives personally go to collect cash to help customers launder black money.

Among the banks accused in money laundering included: SBI, IDBI, OBC, Dena Bank, IOB, Yes Bank, Dhanlaxmi Bank, PNB, ICICI Bank, Axis Bank, Canara and BoB, Bahal said today.

Banks accept unaccounted cash and invest in insurance products. Insurers such as Reliance Insurance, Tata AIG, Birla Sun Life are also involved in money laundering, Bahal further said.

The Cobrapost editor alleged that banks treated unaccounted cash as agriculture income to avoid income detection.

According to the expose, banks provide facilities to customers such as multiple lockers and machines to count money. For money laundering, banks enable creation of forged pan cards and multiple accounts, Bahal pointed out.

Banks advise investors to maintain fake accounts for seven years saying that all details vanish after this period.

However, immediately after the press conference began, banking stocks recovered from the morning’s losses. The bank Nifty is down just 0.8%.

How to launder black money officially?

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