Cobrapost expose: Banks, insurance firms suspend 15 employees

The government Tuesday said public sector banks and insurance companies have suspended at least 15 officers and employees on money laundering allegations as exposed in a sting operation by an investigative website Cobrapost.

“So far, 15 officers/employees of various Public Sector Banks have been suspended including one from insurance sector. Besides it, 10 officers of PSBs have been divested of their work and six have been asked to proceed on leave,” finance ministry said in a statement.

"More action taken reports are expected in near future,” it said.

Cobrapost had Monday alleged in a sting operation that at least 23 top public and private banks and insurance companies have been doing large-scale money laundering.

It has named 23 public and private sector banks and insurance companies. Public sector firms include State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Indian Bank, Indian Overseas Bank, IDBI Bank, Oriental Bank of Commerce, Dena Bank, Corporation Bank, Allahabad Bank, Central Bank of India, and their insurance associates.