'Include terror funding under PMLA'
Security agencies have expressed serious concern at the absence of any stringent law to check the funding of terrorism as the Prevention of Money Laundering Act does not cover proceeds from terrorist acts and favoured a crackdown on mushrooming mo...
By PTI |
NEW DELHI: Security agencies have expressed serious concern at the absence of any stringent law to check the funding of terrorism as the Prevention of Money Laundering Act does not cover proceeds from terrorist acts and favoured a crackdown on mushrooming money transfer agents in the country.
The Prevention of Money Laundering Act (PMLA), which came into force in 2005, is aimed at preventing the funding of terrorism but law enforcement agencies have faced difficulties in implementing it, official sources said.
At a recent meeting between security agences, the finance ministry and officials of the Reserve Bank of India, law enforcement bodies expressed their reservations on the PMLA, saying its implementation was lengthy, time-consuming and not beneficial in curbing financial transactions by militants.
Serious concerns were expressed at the mushrooming of money transfer agencies, especially an international money transfer company that has its agents on almost every street, the sources said.
RBI officials informed the meeting that permission had been given to the company to have agents and sub-agents like banks, post offices and important financial institutions.
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However, they were unable to give an explanation when questions were raised about the appointment of "sub-sub agents" like grocery shop-owners and travel agents, and the security agencies expressed fears that such outlets were being used by militants for money transfers involving small amounts, the sources said.During the meeting, officials said the PMLA was expected to provide necessary legal framework for tackling the funding of terrorists but certain provisions of the law have rendered its application "difficult", they said.
"The PMLA carries no allusion to proceeds of terrorism or the punishment connected to any such offence, especially when the Unlawful Activities (Prevention) Act does not find a place in the schedule of the PMLA," said a source.
The security agencies made it clear that the provisions of the PMLA cannot be used to punish those "deployed or employed" for the transfer of terrorist funds.
Some officials said the law was for "secondary offences" and could be applied only after people were chargesheeted for heinous first crimes like murder, contract killings and violation of the Official Secrets Act or Wildlife Act.
The PMLA was debated and implemented in July 2005 but surprisingly, the Unlawful Activities (Prevention) Act, under which terrorist outfits have been banned in the country, does not find any mention in the list of offences covered by the PMLA, the sources said.
According to the PMLA, only offences like waging of war against the country, murder, extortion, kidnapping for ransom, and violation of the NDPS Act, some sections of Arms Act, WildLife Act, Immoral Trafficking Act and Prevention of Corruption Act were punishable, they said.
The reporting authorities, according to the law, are banks and other regulatory bodies and the security agencies could not suo moto seek any information from banks about any "suspicious" transactions.
Though the government was contemplating making global gateways like MasterCard and Visa reporting authorities, security agencies were apprehensive about the move as both companies are based overseas and cannot be controlled by Indian laws.
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