CBI arrest Punjab and Sind Bank official, 18 others for cybercrime
The Central Bureau of Investigation has registered two separate FIRs against Punjab & Sind Bank branch head Vikas Wadhwa and 18 other individuals for allegedly opening mule accounts, which were used to conceal and layer funds over INR 1,621 crore generated from cybercrime and other illicit activities. The case emerged following a preliminary enquiry that exposed systematic violations of banking norms and the creation of fictitious accounts used to launder proceeds from cybercrime and other illicit activities.
The investigation revealed that 13 mule accounts were opened in the names of non-existent companies using completely fabricated documentation. Further, that several individuals arranged forged and fabricated KYC documents, false rent agreements and other supporting documents used for opening the accounts. Vikas Wadhwa was the head of that branch.The CBI has booked former chief manager and head of the main branch, Aman Anand, and that of the Government Girls Senior Secondary School branch, Vikas Wadhwa, besides a number of other entities in the case, including the companies and individuals who facilitated the opening.
The investigation found that several individuals arranged forged and fabricated KYC documents, false rent agreements and other fabricated supporting documents used for opening these accounts. “The said accounts were allegedly opened with the connivance and criminal conspiracy of unknown bank officials, violating KYC norms, due diligence requirements and standard operating procedures,” the agency has alleged in the FIRs.
A mule account — set up using falsified identification documents — is primarily used to move or launder illicit money, with or without the knowledge of the individuals whose details have been used to open the account. “Fake site visit reports and business verification were created by the bank officials to facilitate opening of these current accounts in the names of fictitious firms,” the agency FIRs alleged. The central probe agency said all the 17 firms in whose names the said current accounts were opened were non-existent and created solely to open and operate these current accounts using forged and fabricated documents.
It is further revealed that significant transactions worth thousands of crores of rupees were routed through these mule accounts through various banking channels and digital platforms, the FIRs alleged.“These accounts were subsequently used to route, layer and transfer proceeds of cyber-crime and other illicit activities,” the agency alleged. The CBI said the accused persons made illicit gain for themselves and corresponding “wrongful reputational loss” to the Punjab & Sind Bank. “Besides this, if the allegations of money laundering are made out, the accused persons have also exposed the bank to the risk of penalties, thereby placing the bank in a position where it is likely to suffer financial loss on account of such penalties as well,” the CBI FIRs alleged.
