KYC case study 1.

One of our branch had opened three Savings Bank account in the names of 1)Shri Vishal S/O Shri Suresh Chand , 2)Shri Sachin S/O Shri Suresh Chand and 3) Ku Anshu D/O Shri Suresh Chand on 18.06.04 and collected three cheques of Rs 0.93 lacs each for credit of the said accounts. The cheques were issued by the Officer in charge ,land acquisition , Indira Sagar Project . NHDC, Khandwa. Soon after collection of cheques the depositor withdrew the amount . On 17.09.2006, police came to the branch for seizure of documents related to the opening of above SB account and withdrawal of Rs 0.92 lac from each account. It was reported by them that the cheques of Rs 2.79 lacs had reached a wrong person , who had reportedly fraudulently opened accounts and encashed the same. 2.The prospective borrower was introduced to Branch Manager by one of the employees of his Branch for availing loan against LIC policy. The prospective borrower and our employee also offered their services to get the assignment done , to expedite the process . The Manager handed over the documents in good faith , and released the loan in due course. The matter came to light after similar attempt was made at a nearby Branch . the same employee of our Bank introduced to the Branch Manger the same fraudster as prospective borrower. But the alert Branch manager , however preferred to cross check with LIC of India and found the Policy deed and the surrender value certificate to be fake. 3. An employee of proprietary concern , posing himself as proprietor , opened a Current Account with one of our branch . The account introduced by an existing account holder . Documents required for account opening were submitted . A photograph of real proprietor was also affixed on the account opening form subsequently. The employee then deposited some cheques favouring the firm and subsequently withdrew the funds in cash . He continued this process almost a year . The said person also opened a current account in the name of another entity. This account was used for siphoning off funds from fraudulently opened first current account. Some time in February ,2006 the real proprietor complained the branch that it had opened a current account in the name of the firm without his knowledge. In the complaint he has alleged that some cheques favouring his firm were collected through the said account and funds misappropriated . He has through legal notice , demanded the reimbursement of such misappropriated funds . the real proprietor has also filed Police complaint against his employee as well as the Bank. Investigation into the matter revealed among other things that the branch official was not sure whether the person who has signed the AOF was the same as appearing in the photograph which was provided subsequently.