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Rapid Response Team: 0800 559 3500
Switchboard: +44 (0)203 947 1539
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Rapid Response Team: 0800 559 3500
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AUDITOR ARRESTED AS INDIA’S BANK SCANDAL INTENSIFIES

Author: Nicola Sharp  7 March 2018

Indian authorities have arrested a senior Punjab National Bank internal auditor as they investigate a $2 billion fraud at one of its branches.

The auditor is the seventh member of staff to be detained as investigations continue into loan fraud on a huge scale at a Mumbai branch of the bank. Initial estimates put the size of the fraud at $1.3 billion but the authorities say the true figure is now more likely to be $2 billion.

Two men, who have denied wrongdoing, have left India even though they have been summoned for questioning.

The fraud is believed to have started in 2011 and grown in scale over the years. Banking analysts in India have said the scandal shows how weak state banks are when it comes to having measures in place to prevent fraud.

We have been saying for years that companies must take responsibility for preventing illegal behaviour in the workplace, whether it be fraud, money laundering, bribery or any other offence. If they do not do this, they should not be surprised when someone takes advantage of weaknesses in the system to benefit themselves.

Read our article: PREVENTING FRAUD AND MONEY LAUNDERING

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Nicola Sharp

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Nicola is known for her fraud, civil recovery, arbitration and business crime expertise, her experience of leading the largest financial disputes and multinational investigations and her skills in devising preventative measures and conducting internal investigations for corporates.

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