A Setback for Foreign Banks in India
January 6, 2011
Total Loss:
$67.2 million
For years, foreign banks have been trying to gain greater access to India's vast financial services market, but a scandal at a Citibank branch near New Delhi threatens to complicate those efforts, banking experts say. Police in Gurgaon, a high-technology hub southwest of the capital, are investigating a case in which an employee at the branch allegedly colluded with others to siphon off an estimated $67.2 million from wealth-management customers. The alleged scam included making false promises on investment returns and forging government documents.
Source:
WSJ
Posted in:
Internal Fraud