Money Laundering

Context: SC is hearing a case related to misuse of PMLA.   Prevention of Money Laundering Act (PMLA), 2002: PMLA enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds. Objectives: To prevent money-laundering. To provide for confiscation of property in money-laundering. To punish those who commit the …

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Underreporting of income: 61 individuals has declared an income of more than Rs 100 crore during the assessment year 2017-18. Even though the numbers have increased sharply from the 38 individuals reporting income over Rs 100 Crore in the previous assessment year, it is still a minuscule number in a population of 1.3 billion Indians. …

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Context: India is the world’s second-biggest consumer of the metal. Gold import is likely to rise during the country’s peak holiday season as buyers try to avoid paying a new sales tax and to dodge new transparency rules Unaccounted sale will rise in the festive season as some customers are trying to buy without bills …

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Context: Ministry of Corporate Affairs has identified 1.06 lakh directors of ‘shell companies’ for disqualification under the relevant provisions of the Companies Act, 2013. The move is part of actions to break the network of ‘shell companies’ and further the fight against black money/money laundering In news: ‘Name and shame’ exercise: Ministry of Corporate Affairs (MoCA) has …

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Facts: Money parked by Indians in Swiss Banks have nearly halved to about Rs 4,500 crore in 2016. The funds reported in 2016 is the lowest amount of funds possessed by Indians in the Swiss banks ever since 1987 and marks the third straight year of decline. Context: Switzerland has ratified automatic exchange of financial account information with India and …

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What will the Task Force do? Task Force is constituted to crack down on Benami Firms. It will include members from various regulatory Ministries and enforcement agencies. The involved agencies will invoke the stringent Benami Transactions (Prohibition) Amendment Act, 2016 against the shell companies and freeze their accounts and strike off the names of dormant …

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Foreign Contribution (Regulation) Act, 2010 It regulates the foreign contribution (money donation) and foreign hospitality (e.g. free airplane tickets and hotel lodging during videsh-yaatra) given to various NGOs, institutes, judges, journalists, public servants etc. Context Recently the Government has cited FCRA violation to reject several NGO renewal applications. Activists contend that this is being done …

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What do you understand by Round-tripping? Examine the  relationship between P-Notes and Round-tripping. In recent past SEBI, Supreme Court and Government have initiated measures either to bring back black money or to curb its circulation. In this regard, discuss why addressing issues related to P-Notes and Round tripping is critical. (200 Words) The term ‘Round …

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FATF is an inter-government body that sets the standards for measures to counter terror financing, money laundering and other threats to international financial system. India is FATF compliant. Money cannot be sent to “non-cooperative” countries. Recommendations: Criminalise Money Laundering with Vienna and Palermo Convention of UN. What are the steps taken by India? The Reserve …

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Undisclosed foreign income and assets (Imposition of Tax) Bill, 2015 seeks to put curb on the menace of black money stashed abroad and also tax evasion. The law applies only to the residents and not to the professionals working in foreign countries and NRI’s. Pros- Will help to get a better perspective of the real …

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