Operation Chakra-V: 8.5L mule accounts in more than 700 Bank branches, CBI launches nation-wide searches

In continuation of the ongoing efforts to combat cybercrime and Digital Arrest Scams, the CBI has launched coordinated searches at 42 locations across 05 states, namely Rajasthan, Delhi, Haryana, Uttarakhand, and Uttar Pradesh.

The searches are part of Operation Chakra-V to deal with the menace of mule bank accounts being opened by organised cyber fraudsters involved in digital arrest scams, impersonation, fraudulent advertisements, investment frauds, and UPI-based financial frauds to transfer the cyber fraud amounts from the accounts of the victims.

These cyber fraudsters are being helped by the commissions and omissions of certain bank officials, agents, aggregators, bank correspondents, middlemen, and e-Mitras who are facilitating in opening of mule accounts used for receiving and transferring proceeds of cyber frauds, as well as enabling withdrawals from such accounts.

CBI has initially registered an enquiry to unearth the entire conspiracy of opening of mule accounts, the role of the bankers and the middlemen, and to understand the existing bank’s rules and guidelines. Enquiry revealed that more than 700 branches of various banks across India have opened around 8.5 lakh mule accounts.

These accounts were opened either without proper KYC norms or Customer Due Diligence, or Initial Risk Assessment. The branch managers of the banks have also failed to conduct Enhanced Due Diligence in respect of certain suspicious transaction alerts generated by the systems. Some of the banks have also failed to send the acknowledgement/ thanking letters to customers to verify the addresses of the account holders indirectly.

The guidelines issued vide the RBI Master Circular and certain internal guidelines issued by the banks have been violated. Hence, a FIR has been registered for offences of criminal conspiracy, cheating, forgery, use of forged documents as genuine under IPC/BNS, and also the offence of criminal misconduct by bank officials under the Prevention of Corruption Act.

During the searches, several incriminating documents and digital evidence, mobile phones, Bank Account Opening Documents, Transactions Details, KYC documents have been seized, and the identification of individuals, including middlemen involved in opening of mule bank account, was done.

Further, 9 accused have been arrested, who include middlemen, agents, aggregators, account holders, and bank correspondents for their involvement in the operation and facilitation of opening of mule bank accounts. 

The action is part of the ongoing commitment of the Government of India to sternly deal with Cybercrimes and their perpetrators with a special emphasis on dismantling the infrastructure behind such offences.