India’s central bank investigates money laundering allegations

The Reserve Bank of India is investigating allegations into money laundering by three top tier private banks.  Earlier this month the Cobrapost online magazine conducted an undercover investigation of banks.  The expose alleged that bank employees actively sought to help launder money.  The scandal prompted the investigation by the central authority in India as well as internal investigations within the banks themselves.

While the investigation is yet to be completed, the Deputy Governor of RBI has already gone on record claiming the money laundering controls in India are “perfect”.  Regardless of the outcome of the ongoing investigation, it is hardly a defensible position to say things are perfect.  Criminals are continually revising their schemes.  A key component of risk assessment is periodic reassessment.  Few things are absolute, but you can be relatively sure that nothing is perfect.  We are pleased that RBI is investigating the situation so quickly.  We certainly hope that the central bank is open to improve based on what they may find even if things aren’t perfect.


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