How Can I Report a Bank Manager's Money Laundering Without Being Overlooked?

Hi All, I noticed that one bank manager is helping their clients with money laundering and getting paid for this. He actually collects Form 60 (where PAN is not registered with the account) for high-value cash deposits as per the process. While sending the half-yearly report of Form 60, he pulls out the Form 60s of those specific customers from the report and sends them to the local Income Tax Department. To evade his audit department, he prepares a proper report and files it again.

Where to File a Complaint

Where should I make a complaint about this? Can the authorities find out even if I file a complaint, considering he maintains a perfect report in his records but sends the filtered report to the Income Tax Department?

These kinds of money laundering activities may go unnoticed because they are happening within a bank, and this manager should be held accountable by the law.

Kindly assist with this matter.

Thanks,

Abhishek

Interesting. Where is this bank? With the level of computerization in banks today and the scrutiny by RBI, branch, and concurrent auditors, this should not happen. You can go to the audit department of RBI in the zonal office (Mumbai, Delhi, Bangalore, Chennai). They have a whistleblower department where this type of thing can be reported.

Thank you. This is happening in one of the private sector banks located in Chennai. Surely, I will approach the RBI Whistleblower Department to make the complaint. My only question is, can RBI obtain the report from the IT department [modified by the banker]? Otherwise, the bankers will manipulate the things with their original report filed in their books.

The problem is that the auditors don't dig deeper. They simply look into the physical reports and go through the formalities.

Thanks again,

Abhishek

Verification by RBI and Income Tax Department

First, the RBI and Income Tax Department both have access to a wide variety of data, not just what is suggested to them. So, yes, they can verify. They can ask IT to give a copy of what is submitted to them.

Incidentally, you can also go to the PRO or vigilance officer (or even CTO investigation) at the Income Tax Office in Chennai. Another agency that will be very interested is the Enforcement Directorate office in Chennai.

Reporting Money Laundering Activities

Depending on your interest, check out the latest report on money laundering at the banks. (Google it). You can also speak to them and tell them what you know. They are much better equipped at investigating this nature. However, they are a news agency that may or may not protect your privacy. The three government departments, on the other hand, are bound by law to ensure you are protected.

Incidentally, all banks today have internal vigilance departments to which you can report this. After the penalties that HDFC, ICICI, and AXIS banks paid following the Cobra report, banks are now very careful to prevent such occurrences. The directors of the bank can get into trouble.

I wrote an email to the nodal office of the concerned bank, and I received only an acknowledgment email from them. I don't know whether they took this matter seriously or not. So what should I do next? Should I go and visit the bank directly, or should I go to RBI to file a complaint? Will they investigate this kind of money laundering properly?

As far as I know, the manager earned more than 20 lakhs in a year by doing this, and he will probably continue in the future. So, who or what is going to stop him?

I discussed this with my auditor, and he advised me to relax for a while, but I can't. Therefore, I asked him to file a complaint with the RBI on my behalf. Is this enough to stop this illegal activity?

Please advise.

Thanks,
Abhishek