Agency alleges forged KYC documents were used to open fake accounts that laundered cybercrime proceeds through a Rajasthan branch
The Central Bureau of Investigation has registered an FIR against a branch head of Punjab & Sind Bank and 18 other individuals for allegedly opening mule accounts that were used to conceal and layer over Rs 1,000 crore generated from cybercrime and other illicit activities, officials said on Friday.
The action followed a preliminary enquiry that uncovered 13 mule accounts opened in the names of non-existent firms using forged documents. These accounts were opened at the bank’s Government Girls Senior Secondary School Branch in Sriganganagar, Rajasthan, where Vikas Wadhwa was posted as branch head.
According to the CBI, forged and fabricated KYC documents, fake rent agreements, and other false supporting papers were arranged by several individuals to facilitate the opening of these accounts.
“The said accounts were allegedly opened with the connivance and criminal conspiracy of unknown bank officials, in violation of KYC norms, due diligence requirements and standard operating procedures,” the agency alleged in the FIR.
A mule account is typically opened using falsified identification documents and is primarily used to move or launder illicit money, either with or without the knowledge of the person in whose name the account exists.
The FIR further alleged that bank officials prepared fake site visit reports and business verification documents to enable the opening of current accounts in the names of fictitious firms.
The CBI said all 13 firms were non-existent and had been created solely for the purpose of operating these mule accounts using forged documents. The agency alleged that transactions worth thousands of crores of rupees were routed through the accounts via multiple banking channels and digital platforms.
“These accounts were subsequently used to route, layer and transfer proceeds of cybercrime and other illicit activities. The total transaction amount involved is about Rs 1,084 crore,” the FIR stated.
The agency alleged that the accused, including Wadhwa, made illicit gains for themselves while causing “wrongful reputational loss” to Punjab & Sind Bank. It further warned that if money laundering charges are established, the bank could face regulatory penalties, exposing it to potential financial losses.
Further investigation is underway.
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