New Delhi: Government has issued show cause notices under FEMA in a total of 728 Hawala cases during the last three years and the current year, Minister of State for Finance Jayant Sinha said in Parliament today.
“Show Cause Notices have been issued under FEMA in 728 Hawala cases during last three years and current year. CBI has also registered 6 cases in the related matters during the last three years and current year,” he said in a written reply in Lok Sabha.
In four cases, charge-sheets have been filed in the court and two cases are under investigation, he added. As of September 2015, government registered a total of 637 cases under Foreign Exchange Management Act (FEMA and Prevention of Money Laundering Act (PMLA).
There were as many as 1,093 cases under these Acts in 2014-15; 1,250 in 2013-14 and 1,943 cases in 2012-13, said the Minister. On government action taken against people and banks involved in these kind of activities, he said RBI has issued instructions to all banks highlighting the irregularities observed.
There were cases of both public and private sector bank employees being involved in Hawala transactions during 2012 through 2015, he said. “All banks were advised to look into these aspects and conduct a thorough internal audit and place the report before audit committee of the board of respective banks and to forward the findings to RBI so that further corrective action as required may be taken in this regard,” Sinha said citing RBI’s directives.
The Minister said government has also set up Financial Intelligence Unit (FIU-IND). “FIU-IND is responsible for receiving and disseminating suspicious transaction reports relating to money laundering and financing of terrorism from its reporting entities comprising financial institutions and designated non-financial business and professions such as casinos and registrars of property.
