Search This Blog

March 14, 2013

Banks helping in Money laundering

 How Banks have been converting Black Money via Money Laundering

* Accept huge amounts of cash and invest it in insurance products and gold.
* Open an account to route the cash into various investment schemes of the bank.
* Do it even without the mandatory PAN card or adhering to the KYC norms laid down by RBI.
* Split the money into tranches to get it into the banking system without being detected.
* Use “benami” accounts to facilitate the conversion of black money.
* Use accounts of other customers to channelize the black money into the system for a fee.
* Get demand drafts made for the client either from their own banks or from other banks to facilitate investment without it showing up in the client’s account.
* Keep the identity of the investor/depositor secret.
* Open multiple accounts and close them at will to facilitate the investment of black money.
* Invest black money in multiple instruments in the names of different individuals, not necessarily drawn from among the family.
* Allot lockers for the safekeeping of the illegitimate cash, including special large size lockers to accommodate crores of hard cash.
* Personally come to the residence of the client to take the black money deal forward and collect the cash, even bring along counting machine.
* Use provisions like Form 60 to deposit the illegitimate cash into the account to route it into investment.
* Help the client to transfer black money abroad through NRE (Non-Resident External)/NRO (Non-Resident Ordinary) account; transfer the money telegraphically or through means other than regular banking procedures.

http://www.firstpost.com/business/here-is-how-cobrapost-alleges-private-banks-laundered-money-660547.html

No comments:

Post a Comment