CBI, Finmin, Banks Meet To Crack Down on Mule Accounts
Finance Ministry, PSBs discuss tackling cybercrime-linked money laundering
New Delhi: The Central Bureau of Investigation (CBI) on Monday held a coordination meeting with officials from the Ministry of Finance and public sector banks to discuss strategies to curb the use of mule accounts by cybercriminals for laundering scam proceeds, besides reviewing bank fraud investigations.
The meeting, held in Chennai, was attended by senior officers of the CBI’s Bank Security and Fraud Cell, chief vigilance officers of public sector banks, and officials from the Department of Financial Services under the Finance Ministry.
According to the CBI, discussions covered all pending matters related to ongoing bank fraud investigations and prosecutions, along with measures to strengthen inter-departmental coordination and speed up probes. Efforts were also made to streamline procedures and ensure proactive cooperation in obtaining prior approvals and prosecution sanctions under the Prevention of Corruption Act.
CBI and bank officials exchanged case-specific information on bank fraud investigations, reviewed the status of pending cases, and discussed challenges affecting their progress. Issues related to mule accounts being used in cyber frauds and measures to curb their misuse were also deliberated upon.
Government data shows that people lost more than ₹22,845.73 crore to cybercriminals in 2024, marking a sharp 206 per cent increase over the previous year. Agencies have identified more than 24 lakh layer-one mule accounts across the country. In one case, the CBI uncovered about 8.50 lakh mule bank accounts spread across over 700 branches, which were used to launder proceeds from digital thefts, impersonation scams, fraudulent investment schemes, and UPI-based frauds.
Mule accounts, often opened using forged or falsified identity documents, serve as conduits to siphon money from unsuspecting victims. Such accounts may be opened in the name of individuals who are either unaware of or complicit in their use for illegal transactions.
A CBI spokesperson said pending issues between the agency and public sector banks were resolved during the meeting. “Emphasis was laid on continued structured engagement and institutional coordination to expedite investigations, resolve pending issues, and ensure timely completion of cases. It was agreed to reinforce collaboration to overcome procedural bottlenecks,” the spokesperson said.
