ICICI Bank to probe money laundering allegations

Forms high-level inquiry committee to submit report in two weeks

ICICI Bank today said it has constituted a high-level inquiry committee to probe allegations that it is one of the Indian banks that run a nationwide money laundering racket. The committee will submit its report within two weeks.

"We are deeply concerned with the media reports. We want to assure our customers and all our other stakeholders that we are committed towards adherence to the high standards of business conduct, which is expected of us. We have constituted a high level inquiry committee to investigate into the matter and submit its findings in two weeks," the bank said in a statement.

Earlier today, Cobrapost, an online magazine, claimed that its undercover investigation has revealed that lenders like ICICI Bank, HDFC Bank and Axis Bank run money laundering rackets.

These money laundering services are openly offered to even walk-in customers who wish to launder money. "A variety of options for laundering ill-gotten cash are being offered brazenly. These money laundering services are being offered practically as a standard product across the country," Cobrapost said in a press statement.

The bank was also quoted as saying, “ICICI Group conducts its business with the highest level of compliance to legal and regulatory requirements. All employees of the Group are trained and required to adhere strictly to the Group Code of Conduct, including AML and KYC norms. We have demonstrated our commitment to this by following a zero tolerance policy towards any violation."

Cobrapost claims that it has captured the money laundering racket run by these banks on video tape, which runs into "hundreds of hours".

ICICI Bank said its employees are trained and required to adhere strictly to the group's code of conduct. "ICICI Group conducts its business with highest level of compliance to legal and regulatory requirements...We have demonstrated our commitment to this by following a zero tolerance policy towards violation," it said.