In March 2013, COBRAPOST, an online magazine, carried out a sting operation alleging that employees from three private sector banks had violated some of the money laundering rules and guidelines set by the regulatory authorities.The highlighted modus operandi included opening of accounts without the mandatory PAN card, opening of accounts to route the cash into the Bank’s menu of insurance products, facilitating splitting of the money to evade detection, using dummy accounts to faceplate the conversion of black money, modifying the client profile to make the investment unquestionable and helping the clients to transfer black money abroad through the non-resident accounts.
