In a major crackdown on financial cybercrime, the Central Bureau of Investigation (CBI) has filed a case against a branch head of Punjab & Sind Bank and 18 other individuals for their alleged involvement in routing ₹1,000 crore of illicit funds through mule accounts. The agency's preliminary inquiry revealed a sophisticated network of fraudulent activities involving the opening of 13 mule accounts in the names of non-existent companies, utilizing forged documents.
These accounts were allegedly created to conceal and layer funds generated from cybercrime and other illegal activities. According to the FIR, significant transactions worth thousands of crores of rupees were routed through these accounts via various banking channels and digital platforms. The CBI alleges that the transaction amount involved is approximately ₹1,084 crore.
The CBI's investigation revealed that the accused individuals, including the implicated bank officials, created fake site visit reports and business verifications to facilitate the opening of these current accounts in the names of fictitious firms. The agency has accused the involved parties of illicitly enriching themselves while causing "wrongful reputational loss" to Punjab & Sind Bank. The FIR further alleges that the accused have exposed the bank to potential penalties and financial losses due to possible money laundering charges.
The investigation has uncovered a well-coordinated syndicate that relied on an elaborate digital and financial infrastructure to execute various fraudulent schemes. These schemes included misleading loan applications, fake investment opportunities, Ponzi and multi-level marketing models, bogus part-time job offers, and fraudulent online gaming platforms. The CBI's final report indicates that the group layered the flow of illicit funds through 111 shell companies, routing approximately ₹1,000 crore through mule accounts. One account received over ₹152 crore in a short period.
The CBI traced the origins of the scam back to 2020, when India was grappling with the COVID-19 pandemic. The shell companies were allegedly incorporated at the direction of four Chinese handlers: Zou Yi, Huan Liu, Weijian Liu, and Guanhua Wang. These individuals directed their Indian associates to procure identity documents from unsuspecting individuals, which were then used to establish the network of shell companies and mule accounts. This elaborate scheme was designed to launder proceeds from the scams and obscure the money trail. The CBI's investigation revealed that a UPI ID linked to the bank accounts of two Indian accused individuals was active in a foreign location as recently as August, providing conclusive evidence of continued foreign control and real-time operational oversight of the fraud network.
