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9th November 2021

 

The Central Economic Intelligence Bureau (CEIB), with the help of RBI, the highest enforcement agency in India, is assessing all sectors vulnerable to money laundering and terror financing. The emerging sectors like peer-to-peer processing, neo banking, digital lending, etc. are on constant risk assessment for payment processing and outsourcing. The National Risk Assessment (NRA) is performing complete due diligence of SAR reports and risk assessment to find the scale of vulnerability in SME companies. 

 

RBI said inter-agency cooperation is needed to surface the core issues of money laundering. The CEIB is working with all its intelligence to strengthen the mechanism for taking action against SME companies that do not follow the rules and regulations stated by RBI. 

 

Some of the core points that were discussed in the inter-agency meeting were: 

  • The CEIB has been coordinating with intelligence and other agencies, including RBI and ED.
  • The aim is to act against suspicious entities engaged in laundering and terror financing.
  • An internal assessment had found a low conviction rate in cases lodged under the PMLA.

The real estate sector, gems & jewelry sectors, in particular, are more inclined to money laundering and have been high on the government agenda to prevent organized crime syndicates using their financial institutions to launder money and endanger the economy. Lakhs of unlisted shell companies were shut down due to money laundering activities in the last five years. 

 

Another area of concern is from the northeastern parts and some parts of J&K, as the trail of unaccounted money advances from international sources via NGOs and other non-profit organizations. CEIB has already alerted the banks, financial institutions, and RBI to hold an account for small deposits from money mules that might be deposited into dormant accounts. 

 

Source: Tribune India

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