ICICI Bk rules out money laundering, sees transaction error

ICICI Bank has stated that an internal inquiry did not find any trace of alleged money-laundering. However, the bank has hinted at some transactional errors that may have occured during the process.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney Tech Control
moneycontrol.com

Home » News » Business

Apr 26, 2013, 10.54 PM | Source: Moneycontrol.com

ICICI Bk rules out money laundering, sees transaction error

ICICI Bank has stated that an internal inquiry did not find any trace of alleged money-laundering. However, the bank has hinted at some transactional errors that may have occured during the process.

Like this story, share it with millions of investors on M3

ICICI Bk rules out money laundering, sees transaction error

ICICI Bank has stated that an internal inquiry did not find any trace of alleged money-laundering. However, the bank has hinted at some transactional errors that may have occured during the process.

Post Your Comments

Share Cancel

Moneycontrol Bureau

India's largest private sector lender - ICICI Bank has not traced any evidence of alleged money laundering cases within it. It has just completed its internal investigation based on charges made by a media sting operation on top three private sector lenders. However, the bank has hinted at some transactional errors that may have occured during the process.

"The internal inquiry committee has submitted its reports," said Chanda Kochhar, CEO and MD of ICICI Bank in a conference call while announcing the fourth quarter earnings .

"No actual transaction has taken place. No other transaction has been found in respect of money laundering. There are indications of transactional errors but no case of money laundering. The external inquiry being carried out by Deloitte, is not yet finished. However, initial reports did not find any evidence of money laundering," she said.

A month back, Cobrapost.com, an investigative news website, ran a sting operation alleging that ICICI Bank, HDFC Bank and Axis Bank were involved in money laundering practice. Immediately after that, all banks came out with press statements giving clarifications and ordering internal and external investigations.

At ICICI Bank, there are around 18 employees allegedly involved in the Cobrapost expose. The bank has identified around 20 branches across India to be involved in the case.

"Based on our internal inquiry report, we have not yet taken the final call on those 20 employees. We will do it after all final investigation reports come. We will take measures accordingly," said Kochhar replying to a moneycontrol.com's query.

Earlier, HDFC Bank and Axis Bank had too refuted the claim of alleged money laundering practice. They did not trace any such case in their respective investigation. In their quarterly earnings conference calls, both banks had mentioned of not finding any evidence of alleged money laundering so far. 

The Reserve Bank of India (RBI) had discussed the issue with all those banks. Currently, it is investigating the matter. RBI deputy governor KC Chakrabarty had hinted at taking corrective measures to fix the problem. However, he had ruled out any systemic risk arising out of it.

Last week, Rajiv Takru, the secretary at the department of financial services - government of India, met the RBI in Mumbai. After the meeting, he said that the central bank report pointed out some "aberrations", and assured action against the erring parties.

saikat.das@network18online.com

Buy, Hold, Sell ? Hear it first on M3
ICICI Bk rules out money laundering, sees transaction error

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login