Nine Indian Banks Face KYC Investigation


Nine Indian banks have recently come under fire for harbouring fake accounts linked to a medical institution scandal. Police arrested two people accused on multiple charges, including impersonating proprietors of the organisation. The individuals behind this scheme have allegedly scammed over 50 families of several hundred thousand rupees each. Accordingly to police officials, the total money stolen may exceed ten million rupees.

The accused banks seem to have failed to follow basic KYC measures to verify the identities of those opening accounts in the name of the medical institution – despite several very large transactions taking place. Consequently, the banks are currently under investigation to determine the role they played in facilitating this crime.

“The bankers should have verified credentials of the person before opening an account in the name of the institute. But they seem to have not followed the Know Your Customer (KYC) norms. To add to it, monthly transactions of over Rs 50 lakh were taking place in some of the accounts, which should have alerted the bank authorities to get a check done on the account holders. But no such step was taken, which casts a veil of suspicion on the role of the banks, as they ended up facilitating the crime,” said Commissioner of Police (Ambala-Panchkula) O P Singh.

Read more in The Indian Express.