Money Laundering and its prevention: India
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Banks penalised
PNB fined for rule violation/ 2019
August 3, 2019: The Times of India
PNB fined for anti-money laundering rule violation
Mumbai:
In one of the steepest ever penalties for violation of anti-money laundering rules by a bank, the Financial Intelligence Unit (FIU) has slapped a penalty of over Rs 15 crore on state-run Punjab National Bank (PNB).
Bank sources said that the lapses were not serious and were largely procedural. “We have 7,000 branches and open some 20,000 accounts every day. We are sensitising our offices,” said an executive, adding that the bank will appeal against the order.
Separately, the Reserve Bank of India (RBI) has imposed penalties in the Rs 1-2 crore range on eight public sector lenders for violations related to opening and operating current accounts, discounting of bills, cyber security framework and frauds classification and reporting by commercial banks.
“A scrutiny was carried out by RBI in the accounts of the companies of a group and it was observed that the banks had failed to comply with provisions of one or more of the directions issued by RBI as mentioned above,” the regulator said in a statement.
The list names Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Corporation Bank, Indian Overseas Bank, Oriental Bank of Commerce and Union Bank of India.
Supreme Court’s rulings
2022: SC upholds the validity of the Act
AmitAnand Choudhary, July 30, 2022: The Times of India
New Delhi: The Supreme Court upheld the validity of the stringent Prevention of Money Laundering Act (PMLA) and the vast powers enjoyed by the Enforcement Directorate (ED). It gave the agency the go-ahead to arrest people and conduct search and seizure even when no complaint has been filed, making statements given before it admissible in court and also putting the burden on the accused to prove their innocence.
“Money laundering cannot be said to be less heinous than the offence of terrorism,” the court said.
In a 545-page verdict penned by Justice AM Khanwilkar, the SC examined thread- bare all the controversial provisions of PMLA that were challenged by petitioners, and found all of those to be valid.
Can grant bail in PMLA cases if trial delayed: SC. 2024
AmitAnand Choudhary, March 21, 2024: The Times of India
New Delhi: Observing that stringent bail provisions under Prevention of Money Laundering Act cannot take away the power of courts to protect right to life and liberty of the accused, Supreme Court said bail can be granted on the ground of delay in trial in cases relating to money laundering as a person cannot be kept in jail indefinitely.
While hearing the bail plea of a person who has been in custody for 18 months in an illegal sand mining case in Jharkhand, a bench of Justices Sanjiv Khanna and Dipankar Datta said Section 45 of PMLA, which says that no person shall be granted bail without hearing the public prosecutor and if there are reasonable grounds for believing that he is guilty of such offence, “could not take away the power of courts to grant bail in case of delay in trial”.
“It is related to Article 12 of the Constitution. I have al- ready held this in the Manish Sisodia case that if there is undue incarceration, then court can grant bail and Section 45 (of PMLA) does not come in the way,” Justice Khanna observed. The court, however, allowed govt time to respond to the questions raised before deciding the matter.
YEAR-WISE DEVELOPMENTS
2021: 122 sitting, ex-legislators facing laundering cases
Dhananjay Mahapatra, August 10, 2021: The Times of India
From: Dhananjay Mahapatra, August 10, 2021: The Times of India
The Enforcement Directorate has filed in the Supreme Court a list of 122 sitting and former MPs and MLAs facing money laundering cases for years with highprofile names from across the political spectrum, including several opposition figures, though the list also includes prominent names from BJP.
The list starts with A Raja and K Kanimozhi, who faced the PMLA cases because of the CBI chargesheet in the 2G spectrum scam in 2010. Both have been acquitted and the CBI appeal is pending in the Delhi HC. Following them are the father-son duo of P Chidambaram and Karti, who, according to ED's report in the SC, are facing two cases each — first lodged in 2012 with regard to the Aircel-Maxis deal irregularities, and the second in 2017 regarding clearance to FDI in media.
Ex-CMs named are BJP’s B S Yediyurappa, Congress’s B S Hooda, Virbhadra Singh (since deceased), O Ibobi Singh, JDS's Gegong Apang, Congress’s Nabam Tuki, INLD’s O P Chautala (trial completed), NCP’s Churchill Alemao and Congress’s Digambar Kamat & Ashok Chavan.
See also
Demonetisation of high value currency- 2016: India
Money Laundering and its prevention: India
