IRDA seeks explanation from 3 insurers on money laundering

NEW DELHI: Taking note of a sting operation that alleged money laundering in leading private banks, insurance regulator IRDA today said it has sought explanations from CEOs of HDFC Life, ICICI Pru and Max Life.

Officials of HDFC Bank, ICICI Bank and Axis Bank, the sting operation alleged, had offered to launder unaccounted money through insurance schemes.

"The Authority has called for relevant data for initiating appropriate action," IRDA said, adding that it has taken up the matter which the CEOs of three insurers.

Soon after the sting operation came in the light, the Reserve Bank of India initiated a probe into the matter. Besides, the Finance Ministry has also started a probe into the issue.

While ICICI Bank has suspended 18 employees, HDFC Bank has initiated an audit enquiry besides suspending its 20 staff. Axis Bank has also formed a senior-level committee to oversee an internal inquiry and asked 16 employees concerned to report to the administrative office.

The three private sector banks were accused of money laundering in a sting operation by online portal Cobrapost.