In a major breakthrough in a high-profile Trade-Based Money Laundering (TBML) scam, investigators from the Enforcement Directorate (ED) uncovered a hard disk during a raid in Chennai’s Mannady area in 2021. The disk contained critical information, including PINs and passwords of foreign bank accounts used to launder crores of illicit money. This discovery connected the dots in an international operation that had sent more than Rs 120 crore to Hong Kong-based companies.
The scam was orchestrated by creating shell companies and faking import transactions. These shell companies, which existed only on paper, had accounts in Indian Bank and Syndicate Bank in Chennai. These accounts were opened using forged documents and operated by impersonators acting as agents for the masterminds of the scam.
The money trail led to Hong Kong bank accounts under the names of companies like “Flourish Noble” and “Decent Mount.” Shockingly, investigators discovered that these foreign accounts were being operated from Chennai itself.
The Role of the Hard Disk in Cracking the Scam
The hard disk seized from the Mannady house became a crucial piece of evidence in the investigation. It contained detailed records, including passwords and PINs, for bank accounts belonging to Hong Kong-based companies. These accounts were hosted in HSBC Bank and had been used to receive proceeds of the crime.
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Investigators also found digital copies of passports, photographs, and personal details of a man named Ruknuthjaman. Although his name appeared on the Hong Kong accounts, further evidence suggested that these accounts were being controlled by someone else in Chennai. Communications requesting fund transfers between these accounts were also uncovered on the disk.
In addition to the digital evidence, physical documents seized during the raid added more clarity. Among these were blank pages with the letterhead of “Flourish Noble.” This raised suspicions that these letterheads were being used to forge documents for bank communications, further cementing the connection between the accounts and the accused operating from Chennai.
Convictions and Further Investigation
In September 2024, the investigation reached a milestone when Abdul Haleem, the owner of the Mannady house, was convicted in a special court under the Prevention of Money Laundering Act (PMLA). Haleem was identified as one of the key operators behind the scam. This marked the sixth conviction in a case that has uncovered a vast network of illegal money transfers since 2016.
Haleem’s involvement came to light after two other accused confessed to his role in managing bank accounts linked to the scam. During interrogation, Haleem revealed that he had been working under the instructions of a man named Ameen from Burma Bazaar. However, investigators have so far been unable to locate Ameen, stalling their efforts to identify the ultimate beneficiaries of the laundered money.
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The modus operandi of the scam was sophisticated yet simple. Impersonators were hired to open bank accounts in India and abroad using fake documents. These accounts were then used to transfer funds, allegedly payments for the import of electronics. However, no actual goods were imported, making the transactions fraudulent.
The ED has also sent Letters Rogatory (formal requests for assistance) to Hong Kong authorities to gather more evidence and trace the beneficiaries of the laundered funds. Investigators believe that the Rs 120 crore uncovered so far is just the tip of the iceberg. Preliminary estimates suggest that over Rs 3,500 crore might have been transferred to Hong Kong from accounts in just two banks in Chennai.
The Scale of the TBML Scam
This case highlights the massive scale and reach of money laundering operations conducted from Chennai. By using shell companies and impersonators, the masterminds managed to funnel large sums of illicit money out of the country. The discovery of the hard disk in 2021 was a turning point in the investigation, as it directly connected local operatives to international money laundering.
Although several convictions have been secured, the investigation remains ongoing as authorities work to uncover the full extent of the scam and identify all those involved. The TBML scam stands as a stark reminder of how technology and forgery can be exploited for criminal activities on a global scale.
