India: Banks suspected of laundering, let off with Rs 5L ($9600) fine

631

Hard hit by criticism that Indian regulators were clueless about big time money laundering happening in the country using the banking system, the government has swung into action after an Intelligence Bureau (IB) alert that a mysterious Madhu Jain — whose identity is yet to be ascertained — had deposited Rs 72 lakh in cash at a Lucknow-based cooperative bank, received pay orders, deposited them in multiple accounts and withdrew the cash immediately.

Jain’s accounts with Mercantile Cooperative Bank Ltd in Lucknow disappeared as soon as the cash was withdrawn. The bank is being investigated as it is believed to be behind a bigger money laundering racket allegedly to the tune of Rs 8,000 crore involving transactions carried out between 2000 and 2009. Jain’s case had come to light sometime in 2008.

Detailed news link: click here