Cobra stings again, 23 new institutions named

Staff of PSU banks, bank aspirants also caught offering money laundering solutions in a new expose

In its continuing undercover operation, spanning several months, Cobrapost finds dozens and dozens of major public sector banks, and many more private banks, across the country are blatantly involved in money laundering, as are major insurers. In all, 23 banks and insurance companies have been exposed, namely, State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, all public sector banks, and their insurance associates; Yes Bank, Dhanlaxmi Bank, Federal Bank, DCB Bank, HDFC Bank, ICICI Bank and Axis Bank, all private banks, and their insurance allies; besides the state-owned LIC of India, Reliance Life Insurance and Birla Sunlife, and Tata AIG, among private sector insurers.

 

Operation Red Spider 2 establishes beyond doubt that money laundering is not confined to private banks, and is not an aberration, as is being made out in certain quarters in the wake of the first expose on March 14 in which HDFC Bank, ICICI Bank and Axis Bank were shown involved in money laundering; it is rather endemic overarching the entire banking system and insurance sector, without exception, however shocking it might be. The scale is vast and unfathomable.

- See more at: http://www.cobrapost.com/index.php/news-detail?nid=605&cid=23#sthash.rCovv52H.dpuf

The crowd at the press conference was smaller, the big screen was grainier, but the allegations were as stinging as always. Online media firm Cobrapost.com today made money laundering allegations against a wider set of banks and financial institutions and lashed out against the government and regulatory agencies’ attempt to play down its similar expose’ in March.

Unveiling the video footage that had over a dozen public sector banks, four private sector in addition to the three named earlier and four life insurance firms, some of which are banking licence aspirants, Cobrapost editor Aniruddha Bahal told reporters, “operation Red Spider 2 establishes beyond doubt that money laundering is not confined to private banks and is not an aberration as is being made out.”

Bahal claimed that the undercover operation conducted by the firm’s associate editor Syed Masroor Hasan clearly established that money laundering services are being offered openly as a standard product across the board and even a walk-in customer can avail of such services that help him launder all his unnacounted cash.

Bahal said the five banks were caught doing these in their Parliament Street branches itself. “Inki Kanoon yahan nahi chalegi toh aur kahan chalegi? (if the law doesn’t survive on the Parliament street, where else will it?)”

The stings were carried out over a period of six months across Uttar Pradesh, Rajasthan, Delhi, Haryana Andhra Pradesh and Karnataka.

Lashing out at the central bank, finance ministry and the banks, which were named in the first expose, Bahal said, “They have handed out clean chits to themselves on the premise that there were only violation of KYC (know your client) norms and as such “ no money laundering took place because no transaction took place. This is absurd to say the least. The officials caught on tape have demonstrably stated that they would engage in money laundering for our reporter. According to their own statements, they have done this plenty of times in the past and are eager to do it again. This amounts to crystal clear offences under IPC as well as PMLA (Prevention of Money laundering activities Act). There is no ambiguity on this account whatsoever.”

Further, Cobrapost also alleged that these transactions were not confined to a few low-level front office staff as was being made out by the banks in the “so-called inquiries.”

“Our interactions with all officials some with the ranks of divisional manager, territory manager, assistant general manager and vice presidents with scores of branches under their charge, bear it out clearly that they are parties to and facilitators of these transactions,” Bahal said.

Institutions named in the Cobrapost expose

State Bank of India

Bank of Baroda

Punjab National Bank

Canara Bank

Indian Bank

Indian Overseas Bank

IDBI Bank

Oriental Bank of Commerce

Dena Bank

Corporation Bank

Allahabad Bank

Central Bank of India

YES Bank

Dhanlaxmi Bank

Federal Bank

DCB Bank

HDFC Bank

ICICI Bank

Axis Bank

LIC of India

Reliance Life Insurance

Birla Sunlife

Tata AIG