This was stated by the Union Minister of State for Finance, Bhagwat Kisanrao Karad, in a written response to a question in the Rajya Sabha newspaper, today, Tuesday.
In providing information on addressing the issue of money laundering through illegal loan applications, the minister said that the Execution Directorate has been entrusted with the task of combating money laundering under the provisions of the Anti-Money Laundering Law of 2002.
Karad said that the PSD has begun investigating under the PMLA in several cases where proceeds of crime were generated and obtained by the accused persons/entities through illegal loan applications.
In these cases, the minister said that so far, proceeds of crime of Rs. 2,116 crore (approx.) have been identified, out of which proceeds of crime amounting to Rs. 859.15 crore have been attached/blocked/frozen under the provisions of the PMLA.
Further, assets amounting to Rs. 289.28 crore were seized under section 37a of the Foreign Exchange Management Act 1999.
Giving further information, Karad said RBI has issued a major circular on Know Your Customer (KYC) / Anti-Money Laundering (AML) / Counter-Terrorist Financing (CFT) / Obligation of banks and financial institutions under the money ban. Money Laundering Act (PMLA), 2002.
The minister said that under this circular, banks and financial institutions were instructed to follow certain procedures to identify customers to open accounts and monitor transactions of a suspicious nature to avoid misuse of money laundering and to report this to the competent authority.
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