The Enforcement Directorate (ED) has detained a manager of a Kotak Bank branch in its money laundering probe in a criminal case of finding of nine alleged fake accounts with deposits worth Rs 34 crore after demonetization move.
According to the officials, the agency detained the manager of the bank’s branch after questioning in the K G Marg area, late Tuesday night. “The manager has been arrested under the provisions of the Prevention of Money Laundering Act and will be produced before the court for further custody,” they said.
The ED took on the case and filed an FIR under PMLA laws. The police had also detained 2 persons for allegedly depositing black money worth Rs 34 crore in nine fake accounts being operational in the Naya Bazar branch of the said bank last week.
As per a report in Indian Express, a bank representative had then said that it, “confirms it has a robust system of regularly and proactively filing necessary reports with the statutory authorities as prescribed by them, which include these accounts. The Bank denies that there were any fake accounts. The Bank is extending full cooperation to the investigating authorities.”
In the meantime, Kotak Mahindra Bank issued a statement saying the said employee has been suspended as a result of continuing investigations. “With reference to the ongoing investigation of the said accounts, Kotak Mahindra Bank had proactively informed Financial Intelligence Unit (FIU) and the Bank has already suspended the services of its employee Ashish Kumar,” said a spokesperson for the Kotak Mahindra.
“The Bank has zero tolerance towards employees not adhering to its Code of Conduct, and takes strict measures against them,” the official statement added.
Further, the bank assured it “has a robust system of regularly and proactively filing necessary reports with the FIU for all large transactions” and that Kotak Mahindra “keeps record of all the necessary bank documents”. The statement also guarantees that Kotak Mahindra Bank has been fully cooperating with the authorities, and “has demonstrated the highest standards of compliance”.
