A director of peer-to-peer lender Zopa has resigned from the board after being arrested in India as part of a money laundering investigation.
Kapil Wadhawan, who is also chairman of The Wadhawan Global Capital and leads large property finance groups in India, first became involved with Zopa in 2017 when he set up a UK subsidiary.
He resigned as director of Zopa on 6 February according to Companies House, as first reported by Financial News.
At the end of last month Wadhawan was arrested in India by the country’s Enforcement Directorate, which is responsible for policing financial crime.
The enforcement body was troubled by suspected money laundering and that local media was reporting of the alleged crimes being connected to terrorism.
In December Zopa announced a £140m investment from IAG Silverstripe to fund the launch of its bank.
“As part of the planned investment by IAG, we are reorganising our board” a statement from Zopa said.
“As part of this process, WGC have agreed to give up their board seat in Zopa post the completion of the deal, and Kapil Wadhawan has resigned from the Zopa Group board with immediate effect.”
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