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Money Laundering Case Study

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Human ingenuity, creative imagination and expertise have produced infinite varieties of laundering schemes. They are as varied as, the modus operandi adopted in smuggling contraband. Banks and financial institutions, easily available for public transactions, are also open to organized crime, drug traffickers, terrorists and white collar criminals. In 1995,the South Indian Bank Ltd., Nariman Point Branch, Bombay was involved in a massive money laundering operation. Enquiries conducted revealed that a number of fictitious accounts were opened and one was of M/s Chinubhai Patel & Co. His account was utilized for depositing cash of Rs. 387,379,000/- and from his account remittance equal to US $ 12,048,650/- was remitted to Hong Kong in favour of M/s R.P. Imports and Exports, Hong Kong. The remittances were made on the basis of fraudulent documents.Similar cases for reported by other banks too. Another money laundering angle in the case involving construction of a luxury housing project in Shimla by Bemloe Development and Infrastructure Company Private Limited. The company had share holders from Tarn Taran and Amritsar but they were never issued shares. …show more content…

Two senior Bank of Baroda officials for allegedly aiding 59 companies holding accounts at one of its Delhi branches in sending illegal remittances worth Rs 6,000 crore abroad were arrested in a money laundering case.. As reported , 59 current account holders and unknown bank officials conspired to send overseas remittances, mostly to Hong Kong, of foreign exchange worth approximately Rs 6,000 crore in illegal and irregular manner under the garb of payments towards suspected non-existent imports. The four arrested by the ED under the Prevention of Money Laundering Act included Kamal Kalra, forex official at a private bank, and three traders — Chandan Bhatia, Gurucharan Singh Dhawan and Sanjay

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