Kotak Mahindra Bank suspends manager after ED's arrest

In a statement, Rohit Rao, Spokesperson, Kotak Mahindra Bank said, "With reference to the ongoing investigation of the said accounts, Kotak Mahindra Bank had proactively informed Financial Intelligence Unit (FIU) and the Bank has already suspended the services of its employee Ashish Kumar. 

The Bank has zero tolerance towards employees not adhering to its Code of Conduct, and takes strict measures against them."He also said that the bank confirms that it has a robust system of regularly and proactively filing necessary reports with the FIU for all large transactions. The bank has on record all necessary KYC documents, including PAN card. The bank on its own, on observing the nature of transactions in these accounts, proactively filed a report with FIU for further investigations well in time, the spokesperson added. 

On subsequent investigation by the Income Tax authorities, the Bank, as per their instructions, has deposited the entire amount that was credited with these accounts with the Income Tax department. As can be seen from the Bank's actions, the Bank has fully cooperated and communicated with the relevant authorities, and has demonstrated the highest standards of compliance, and the Bank will continue to do so, Mr Rao said.

Earlier, the ED officials said, "The manager has been arrested under the provisions of the Prevention of Money Laundering Act and will be produced before the court for further custody." Last week, two Kotak Mahindra Bank customers had been arrested for depositing the Rs 34 crore at a Kotak Mahindra Bank's branch in New Delhi.