Cobrapost: Act, against employees, govt directs banks

Authorities have also asked for a detailed report on utmost priority with the name of the employee, his designation and action take

The government today asked banks to immediately suspend employees suspected of facilitating money laundering and asked for an action taken report after completing the inquiry expeditiously.

“In connection with Cobrapost, Red Spider 2 Expose that was released today morning, the Secretary, Department of Financial Service Rajiv Takru has asked Chairman & Managing Directors (CMDs) of various Public Sector Banks as well as  Life Insurance Corporation of India  for an immediate action,” the finance ministry said in a statement today.

Any officer or employee, who clearly appeared to be advising potential customers along lines that would be an infringement of the legal process, could facilitate money laundering or could defeat the KYC (Know Your Customer) norms or the due diligence norms would be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer’s work and institute a special audit, if required.

In case where the behaviour and conduct of an employee fails to meet the standards of conduct and behaviour expected of him or brings the institution into disrepute, such person may immediately be divested of their work/portfolio and advised to voluntarily proceed on leave while a detailed examination on the same lines is conducted, the ministry said.

The Secretary has also asked for a detailed report on utmost priority with the name of the employee, his designation and action taken.

The instructions have been sent to Allahabad Bank. Andhra Bank, Bank of Baroda, Bank of India ,Bank of Maharashtra, Central Bank of India, Dena Bank, Indian Overseas Bank, Punjab and Sind Bank, Punjab National Bank, UCO Bank, United Bank of India, Vijaya Bank, State Bank of India, State Bank of Bikaner & Jaipur, State Bank of Patiala, State Bank of Hyderabad, State Bank of Travancore, Indian Bank, Corporation Bank, Union Bank of India, Canara Bank, IDBI Bank, Syndicate Bank, Oriental Bank of Commerce, State Bank of Mysore and Life Insurance Corporation.