HDFC hires Deloitte to conduct forensic audit

Asserting that it was committed to highest standards of compliance, corporate governance and ethics, HDFC Bank on Saturday announced the appointment of accounting and audit firm Deloitte Touche Tohmatsu India to carry out independent forensic enquiry into allegations of some of it's official’s involvement in money laundering activities.

In addition to this, HDFC also announced appointment of Amarchand & Mangaldas and Suresh A Shroff & Co to examine the breaches, if any, of the bank’s Code of Conduct and ethical standards, by any bank officials, a statement issued by the HDFC Bank here said. ``The bank is committed to the highest standards of compliance, corporate governance and ethics, and has in place systems and procedures to ensure that its business is conducted in compliance with laws and regulations,’’ it stated.

The statement said, an internal departmental enquiry was already underway to verify the truth or untruth or correctness, as the case may be, in the reported tapings of bank officials. This process has been initiated without prejudice to the authentication of the video recordings or electronic data

It added, "the internal and external audits and inspections undertaken previously, and the action taken reports in this regard are being compiled and reviewed once again, to enable the Bank to reiterate that the internal checks, balances and processes for ensuring compliance with KYC norms and for prevention and detection of money laundering activities are robust and adequate."

Further it said the Bank was also proceeding to detail out the internal checks and balances and procedural safeguards already in place to report on the robustness of the compliance of regulatory guidelines and internal procedures, which would prevent, trap or enable pre-fact or post-fact discovery of violation of KYC norms and of money laundering activity. The Bank is also detailing the efficacy of induction and ongoing training provided for ingraining ethical behaviour and conduct rules, as preventive and protective measures.

The country's three largest private banks -- ICICI Bank, HDFC Bank and Axis Bank -- were accused of indulging in money laundering both within and outside, with an online portal Cobrapost claiming that a sting operation conducted by it had revealed a money laundering scam.