India’s Central Bureau of Intelligence (CBI) says it has initiated a major trade-based money laundering (TBML) probe into 13 private companies and several unnamed bank officials.

The alleged money launderers sent remittances to the value of around US$340 million for goods that were worth just US$3.7 million.

Allegations

The case centres on two directors of a Mumbai-based company, Stelkon Infratel, who allegedly remitted US$70 million through Punjab National Bank against 25 import consignments with a declared value of just US$472,000.

The company allegedly made 96 more similar transactions through different banks, including Canara Bank, State Bank of Hyderabad, Corporation Bank, Central Bank of India and Axis Bank.

The CBI says it is investigating several more Mumbai and Thane-based companies that are most likely linked and operated several current accounts in different banks and locations.

TBML methods

Amongst TBML techniques allegedly used in this case, the money launderers submitted the same shipping documents to different banks.

Officials at CBI say they are investigating bankers at several financial institutions, including Canara Bank, State Bank of Hyderabad, Corporation Bank, Central Bank of India and Axis Bank.