 "ICICI Bank appoints Deloitte for forensic inquiry")
ICICI Bank, the largest private sector bank in the country, has appointed Deloitte Touche Tohmatsu India to conduct an independent inquiry into the allegations that the lender is one among three private banks running a money laundering racket.
The bank is also reviewing the relevant systems and processes and conducting an audit of some of its branches and the corresponding back-end processes.
ICICI Prudential Life Insurance Company, the life insurance arm of the bank, has taken similar steps to investigate the matter. “Deloitte is to arrive at its findings in a time-bound manner and report to the Audit Committee,” ICICI Bank said.
Cobrapost’s journalists visited 20 branches of HDFC Bank, 19 branches of ICICI Bank and nine branches of Axis Bank across the country during their sting operation.
Several employees in these three banks were captured on video tape offering money laundering as a product to the undercover journalists. ICICI Bank, however, said initial inquiry shows no actual transactions have taken place.
The bank has suspended 18 employees pending completion of inquiry. It has also formed a high-level inquiry committee to investigate the allegations. The committee will submit its report in two weeks.
HDFC Bank has also appointed Deloitte Touche Tohmatsu India to conduct an independent forensic inquiry into the allegations. It has also roped in Amarchand & Mangaldas & Suresh A Shroff & Co to examine if any of its employees violated the bank’s code of conduct and ethical standards. The bank’s internal department is also probing the matter.
The private lender will also carry out special audit of some of its branches, which allegedly offered money laundering as a product to customers.
Axis Bank has asked its 16 employees concerned to report to respective administrative offices, pending the inquiry. It has constituted a senior level committee to monitor and supervise the entire investigation process on a daily basis.
The bank is also reviewing the relevant systems and processes and conducting an audit of some of its branches and the corresponding back-end processes.
ICICI Prudential Life Insurance Company, the life insurance arm of the bank, has taken similar steps to investigate the matter. “Deloitte is to arrive at its findings in a time-bound manner and report to the Audit Committee,” ICICI Bank said.
More From This Section
The move comes after Cobrapost, an online magazine, claimed its undercover investigation revealed that the top three private banks — ICICI, HDFC and Axis — violated several provisions of the Income Tax Act, Foreign Exchange Management Act, Prevention of Money Laundering Act and regulations mandated by the Reserve Bank of India.
Cobrapost’s journalists visited 20 branches of HDFC Bank, 19 branches of ICICI Bank and nine branches of Axis Bank across the country during their sting operation.
Several employees in these three banks were captured on video tape offering money laundering as a product to the undercover journalists. ICICI Bank, however, said initial inquiry shows no actual transactions have taken place.
The bank has suspended 18 employees pending completion of inquiry. It has also formed a high-level inquiry committee to investigate the allegations. The committee will submit its report in two weeks.
HDFC Bank has also appointed Deloitte Touche Tohmatsu India to conduct an independent forensic inquiry into the allegations. It has also roped in Amarchand & Mangaldas & Suresh A Shroff & Co to examine if any of its employees violated the bank’s code of conduct and ethical standards. The bank’s internal department is also probing the matter.
The private lender will also carry out special audit of some of its branches, which allegedly offered money laundering as a product to customers.
Axis Bank has asked its 16 employees concerned to report to respective administrative offices, pending the inquiry. It has constituted a senior level committee to monitor and supervise the entire investigation process on a daily basis.