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India: Illegal remittances racket mints Rs1billion
December 20, 2015, 4:52 pm

The masterminds of a remittances racket operating through Bank of Baroda (BoB) were allegedly charging Rs1.35 for every dollar sent abroad from people who wanted to use their services.

The Central Bureau of Investigation (CBI) investigation into a more than Rs60 billion transfer to Hong Kong and a Gulf city through BoB’s Ashok Vihar branch has indicated that the master operators were charging this premium by offering their channel to send the money abroad, the agency’s charge sheet alleged.

The CBI has filed a charge sheet that reveals nearly $10 billion (Dh36 billion) was transferred from India to Hong Kong and Dubai using proper banking channels by evading the scrutiny of banking software, which raises red flags on every transaction above $100,000.

Sources said the agency has mentioned in its charge sheet that masterminds of the racket were allegedly distributing the fee of Rs1.35 per dollar among themselves; even the lowest rung of the gang (alleged account holders) made Rs2.5 million-Rs4 million between July 2014 and July 2015.

“The lower rung of the gang was given 20-25 paisa per dollar transferred and during the one-year period they have made about Rs2.5 million — [Rs]4 million by transferring funds through banking channels,” an official said.

The sources said similarly the parties overseas to whom the money was allegedly being transferred made more than Rs3.5 million- Rs6 million in commission from the scam.

CBI has registered a case against 59 current account holders, unknown bank officials and private persons on a complaint from BoB.

Source: Gulf News

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