Demonetisation: Vigilance department to track chain of money launderers in Kerala

THIRUVANANTHAPURAM: With huge sums of unaccounted currency being seized, Vigilance and Anti-Corruption Bureau in Kerala is getting ready to track 'benamis' of money hoarders trying to convert black money into white using note exchange and deposit facilities introduced after demonetisation.

As per preliminary information with VACB, agents are being offered up to 20 per cent commission for money laundering, a top VACB official told PTI.

"Kerala's high density of bank branch network is being leveraged by the corruption chain. VACB has started monitoring this chain... We are checking to see if our banking network is being used by hoarders to convert black money into white," the official said.

The development comes on a day when the Centre has decided to use indelible ink to mark customers exchanging defunct currency notes to check suspicious deposits and operation of syndicates.

VACB director Jacob Thomas has issued instructions to monitor queues in front of various banks throughout the state for exchange and deposit of old notes, the official said.

Since yesterday, police and excise officials have seized unaccounted currency of nearly Rs one crore. While Rs 61.98 lakh was seized from a man in Kozhikode today, Rs 28 lakh had been confiscated from a passenger of a KSRTC bus which came to Kerala via Walayar check post yesterday.

On the Kozhikode seizure, the official said, "The money is suspected to have been brought from Kochi to Kozhikode for converting it into white."

Instructions have been given to examine whether there are such agents standing in queues in banks for depositing money or for exchange of old notes with new ones, he said.

"As per preliminary information, several agents are operating to convert black money into white across the state. In some areas, the commission offered to them is up to 20 per cent," the official said.

The official said they were virtually creating 'mayhem' before banks through the process of money laundering.

The anti-corruption agency has already started a sample study to track the corruption chain and to find if those standing in the long queues are genuine customers or not.

Agencies like Enforcement Directorate, police and intelligence also need to step in, in this drive, the official added.