Axis Bank suspends accounts of some bullion traders

As part of enhanced due diligence exercise, private lender Axis Bank has temporarily suspended transactions of some bullion traders.
"We have temporarily suspended transactions in few current accounts as a part of a larger enhanced due diligence exercise being conducted on transactions post demonetisation," a senior Axis Bank official said.
Some of the accounts in which enhanced due diligence is being conducted are some bullion dealer accounts, the official said, adding the bank expects to complete the enhanced due diligence process over the next few days.
A team of senior bank officials are presently looking into every aspect of KYC/AML for all the accounts and transactions handled by the bank in the post demonetisation period.

The bank has also roped in consultancy firm KPMG to do forensic audit and suspended 19 officials allegedly involved in illegal activity post demonetisation.
Last week, the Enforcement Directorate arrested two Axis Bank managers here and seized 3 kg gold bars in connection with its money laundering probe in a racket of illegally converting old notes in connivance with banking authorities.
The agency's probe till now, after it registered a criminal complaint under the Prevention of Money Laundering Act (PMLA) on November 30, found that huge monies were transferred through RTGS transfers to some shell companies including a case where the Director of such a firm was a "petty labourer."

The agency identified the two managers as Shobit Sinha and Vineet Gupta, working at Axis bank's Kashmere Gate branch, and said they were arrested late yesterday under the provisions of PMLA.