Money Laundering and Associated Concepts 

Context: About 700 entities that had taken the assistance of a hawala racket allegedly operated by Naresh Jain and his associates are under the Enforcement Directorate’s (ED) scanner for suspected laundering of undisclosed income running into thousands of crores. 

  • The entities allegedly paid commissions to the syndicate to rotate funds and also send the money overseas using hundreds of shell companies.

Analysis 

  • Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance (Department of Investment and Public Asset Management; Expenditure; Revenue; Financial Services; Economic Affairs are other departments of the Ministry).
  • It enforces the following laws: – 
    Foreign Exchange Management Act, 1999 (FEMA) – A Civil Law.
    Prevention of Money Laundering Act, 2002 (PMLA) – A Criminal Law. 

A brief analysis of other major agencies of the central government:

  • The Intelligence Bureau (IB) is India’s internal intelligence agency. It is under the Ministry of Home Affairs. 
  • Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance. 
  • The Directorate of Revenue Intelligence is the apex intelligence and investigative agency for matters relating to violation of the Customs Act. It is under the Ministry of Finance. 
  • The Central Board of Direct Taxes (CBDT) is a part of Department of Revenue in the Ministry of Finance.
  • National Investigation Agency (NIA) is a central agency established by the Indian Government to combat terror in India. It is under the Ministry of Home Affairs.
  • The Central Bureau of Investigation (CBI) is the premier investigating agency of India operating under the jurisdiction of the Ministry of Personnel, Public Grievances and Pensions. 
  • All appointments in the CBI above the rank of Superintendent of Police are approved by a five-member committee chaired by the CVC and including two vigilance commissioners and secretaries of the Home Ministry and the Department of Personnel and Training. 
  • The CBI chief is an invitee to the committee and has to be consulted.

Research and Analysis Wing (RAW) 

  • Established to satisfy the need for increased intelligence that was identified during the 1962 Sino-Indian Border War and during the Indo-Pakistani War of 1965, India’s Research and Analysis Wing (RAW) was created in 1968 to handle India’s external intelligence affairs.
  • Currently, RAW operates under the Prime Minister’s Office, and was intentionally established as a “wing” versus an “agency” in order to bypass agency reporting requirements to Parliament’s Right to Information Act. 
  • In 1968, Prime Minister Indira Gandhi appointed R. N. Kao as the first director of RAW.

Attached Bodies or Autonomous Bodies

  • Aerial Reconnaissance Centre
  • The ARC is responsible for collection of high quality overhead imagery of activities and installations in neighboring countries.
  • Special Frontier Force
  • A paramilitary force in India, the Special Frontier Force is headed by the inspector general who reports to the director general of security for RAW. 
  • National Technical Facilities Organization/National Technical Research Organization
  • The function of the NTRO is suspected to be technological espionage. There are also indicators to suggest they perform imagery and communications analysis via varying platforms.

 

Click here  to get Prelims Foundation  2022 Course
Click here to get our all Courses
Click here to follow our latest updates
Click Here to join our Civil Servies Test Series

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top