Citbank fraud: Citi failed to act on scam warning signals, says probe report
The probe report, a copy of which is with TOI, reveals that some suspicious transactions by alleged scam mastermind Shivraj Puri were detected way back in 2008, but no substantial action was taken.
Citi Security and Investigative Services (CSIS), a security and investigative team that protects the assets, integrity and reputation of the bank had submitted a detailed investigation report in May, almost five months after the scam was detected.
Responding to a detailed questionnaire, a bank spokesperson stated, "Citi has been cooperating with the regulators and the investigating agencies and will continue to do so, to bring the perpetrators of this fraud to justice. Since the matter is still under investigation and is subjudice, Citi will not be able to provide further comments at this stage."
The CSIS report mentions that during investigations of Puri's fraudulent activities in 2010 it was disclosed that in May 2008 unusual activity within the staff accounts of Puri and his wife Nidhi was identified by the bank's fraud risk management unit through the banking early alerts tracking system.
The internal investigation records that the alert was referred to managers in the Gurgaon branch. "Several officials in the bank were aware of this and were involved in email discussion. However, the investigation and disciplinary process appeared disjointed and uncoordinated. No single party appears to have taken responsibility for resolving the issue. Instead the assumption appears to have been widely held that someone else was or should have been responsible. The end result was that no formal action was taken," the report states.
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