Citibank scam: Puri was only verbally warned (India)

> Gurgaon/New Delhi: The fraud in Citbank's Gurgaon branch in December 2010 occurred despite several warnings, according to an internal study by the bank. On June 20, 2008, Joginder Singh, Citibank's compliance officer had even recommended to officials to take stern action against the errant employees. The cases should have been referred to CDC (country disciplinary committee), but this was not done.
A fresh banking early alerts tracking system (BEATS) alert linked to Puri's staff account was forwarded to Citi Security and Investigative Services (CSIS) for review in November 2008 relating to the use of loan on phone (LOP) proceeds and transfers between his mother's and his staff account. He was also asked why funds were being diverted from Prem Nath's account -which was used to route Puri's investors' cash to the brokerage

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firms -to his mother's account and then directly to Puri's staff account. These issues were never taken to a logical conclusion.
The CSIS report says that it's apparent, "The business was aware of significant suspicious and unauthorized activities by Puri on two separate escalations, involving the use of his staff account for investment purposes. Compliance, anti-money laundering (AML), HR, operations and technology, consumer banking head and Puri's immediate and other branch management were also aware of Puri's unauthorized activities in violation of Citibank policies." 

source: Times of India

Posted in: 2012, beats, Citbank, CitiBank, Citibank fraud, Citibank scam, csis, early alerts tracking system, january 2, Joginder Singh