CBI arrests two bankers for opening mule accounts to stash cybercrime proceeds

New Delhi: The CBI on Wednesday arrested two bank officials allegedly involved in opening mule accounts in conspiracy with cyber criminals to move illicit funds, officials said.

Shalini Sinha, a former assistant manager at a Canara Bank branch, and Abhishek Kumar, an ex-business development associate in an Axis Bank branch, both based out of Patna, were arrested for their alleged role in the opening of mule accounts and helping cyber fraudsters move funds.

Sinha was arrested in Varanasi, Uttar Pradesh, and Kumar from Betia, Bihar.

Both will be produced before a court after a transit remand has been obtained, the agency said in a statement.

The CBI is also investigating the role of other officials in relation to the opening and operating of mule accounts, it said.

Mule accounts -- set up using falsified identification documents -- are primarily used as conduits to siphon off funds from unsuspecting victims. A mule account is opened in the name of an individual who may or may not be aware that the account is used to launder illicit money.

A CBI spokesperson said "sufficient evidence has been gathered" about the two officials' "active role" in conspiracy with cyber criminals.

"Evidence has also been gathered to prove that these bankers have received quid pro quo for assisting the Cyber fraudsters as part of the conspiracy. These arrested accused have also advised the cybercrime fraudsters how to avoid the system-generated red flags," the spokesperson said in a statement.

The agency had earlier conducted searches at 61 locations across the country and arrested 13 people in connection with the opening of mule accounts and their operation.

Chargesheets were filed against them recently for various offences under IPC/BNS and the Prevention of Corruption Act, the statement said.