Ranika Chaudhary

"Opportunities never sleep; the world never sleeps ... That's why we work around the clock, to turn dreams into reality. " Citi never sleeps This was the punch line of citi bank But.

The fraud, one of the biggest of its kind, came to light when the foreign bank launched an investigation into a certain set of suspicious transactions involving a few accounts in the Gurgaon branch. Subsequently, the bank's assistant vicepresident Binu Soman lodged a complaint with the local police, giving details of the plot. A case of fraud has been registered against the manager and three of his close relatives.

According to the police, Soman's complaint states that Puri had got a joint account opened in the names of Prem Nath, Sehna Prem Nath, and Deeksha Puri in September 2009. When the bank checked joint account (no 5011666247) and realized that there were large cash transactions from this account.

excellent communication and listening skills the ability to explain complex information clearly and simply good sales and negotiation skills an interest in financial products and markets good mathematical and computer skills the drive and motivation to meet targets honesty and a trustworthy manner accuracy and attention to detail the ability to analyse and research information

KYC was introduced by RBI in 2001which requires and make it mandatory to verify details of customers such as Valid identity Residence proof PAN card Passport Utility bills

It also requires to physically verify the address and identity of the customer KYC is applicable when -opening a new account -opening a subsequent a/c -locker facility -when bank feels it necessary -there are changes in signatories -any non account holder approaching high value one off transactions

This was the major loophole in the system in this case. Undue trust of the bank Undue trust of investors To avoid the duplicity and confusion To enhance trustworthiness To make it convenient for customers

STR requires that a bank should immediately inform the regulatory agencies about High value and Unusual transactions in any of its accounts Money laundering-refers to conversion of money illegally obtained to make it as originated from a legitimate source

Under the prevention of money laundering act 2002 the rules are -all demand drafts ,mail drafts or travelers cheque for Rs. 50000 and above can be issued by bank only by debit to customer account -all cash transaction of more than 10 lakh whether (deposits or withdrawals) should be immediately reported

The answer is pretty simple. Bank B is eying Mr. Xs relationships i.e.: the reason Mr. X is being hired by Bank B is not for his expertise but his list of HNI clients. So Mr. X now joins Bank B and immediately doubles or triples his pay package. Now he approaches me and convinces me to switch my investments to Bank B from Bank A and in the process pockets hefty commissions once again.

In both cases, earlier when he made me invest in products of Bank A and later when he made me switch my investments to Bank B, I was made to pay hefty commissions which went straight to Xs pocket.

Basel committee guidelines Internal audit mechanism Key control structures sufficient guidance by BOD prudent operation of banks

On 5th July citi bank has been charged with the penalty of Rs 25 lakh for breaching KYC under anti money laundering guidelines. Though this penalty is insignificant but the move by RBI is important . -image rebuilding