INDIA Trends and Developments Contributed by: Nishant Joshi, Kunal Singh, Palash Bhatkoti and Vikalp Wange, Shardul Amarchand Mangaldas & Co.
the reach of enforcement beyond the immediate act of fraud to the downstream movement of its proceeds. Further, recognising the need for enhanced inter- agency co-ordination, the central government has included the I4C as a data-sharing entity under the PMLA. This inclusion has materially strengthened the ED’s investigative capacity by facilitating more robust and timely exchange of intelligence between law enforcement agencies, thus addressing the infor - mation-sharing delays that have historically hindered effective enforcement. The ED has further leveraged key digital platforms maintained by I4C, namely the SAHYOG and SAMAN - VAYA portals and the Cyber Crime Police Portal, to support its anti-money laundering operations. Additionally, the ED utilises the Inter-operable Criminal Justice System portal, which enables access to FIRs registered by state/UT police authorities in relation to such crimes, thereby enhancing inter-agency co- ordination and strengthening the evidentiary basis for PMLA investigations. Intervention by Courts To Tackle the Menace of Financial Crimes Courts in India have, in recent times, assumed a pro - active role in addressing the growing menace of finan - cial crimes, often stepping in to bridge legislative and regulatory gaps. The Honourable Supreme Court of India and several High Courts have, through various judgments, not only expanded the scope of existing laws but also provided immediate relief in individual cases. By way of these judgments, the courts have also con - tributed to shaping a more robust architecture, which ensures that the legal system remains responsive and resilient to new financial crimes. Set out hereinbelow are a few examples where the courts have, in recent times, stepped in to provide certain guidelines in an effort to deal with new types of financial crimes. The Honourable Supreme Court of India has recently taken suo moto cognisance of the issues arising from
“digital arrest” and has laid down guidelines to deal with the same. Some of the important guidelines are set out hereunder: • the Central Bureau of Investigation (CBI) has been selected as the primary agency to investigate cases relating to digital arrest; • the CBI has been permitted to investigate the role of bankers under the provisions of the Prevention of Corruption Act, 1988, wherever they are found to be involved in the opening of mule bank accounts; • the information technology intermediaries under the Information Technology (Intermediary Guide - lines and Digital Media Ethics Code) Rules, 2021 (the “Rules”) have been directed to co-operate with the CBI and render full assistance to provide traffic and content data for the investigation of digital arrest cases; • recognising the cross-border implication of such financial crimes, the CBI has been directed to submit a request to Interpol and co-ordinate with it to apprehend cybercrime havens operating from different jurisdictions; • telecoms service providers have been directed to implement directions issued by the Department of Telecommunications (DoT), especially with respect to the issuance of SIM cards; • the state governments and UTs have been directed to ensure expeditious establishment and opera - tionalisation of regional and state cybercrime co- ordination centres; • all the intermediaries under the Rules have been directed to preserve all data relating to mobile phones allegedly used in crimes, including details mentioned in the FIRs/crimes registered by various states; • the MHA has been directed to adopt and imple - ment the National Cyber Crime Reporting Portal (NCRP)-CFCFRMS standard operating procedures, as finalised by the Reserve Bank of India, with the objective of preventing money-mule activity; • the DoT has been directed to implement the centralised international out roamer system for addressing the issue of spoofed international calls; • the DoT has been directed to notify the Telecom - munications (User Identification) Rules, 2025 to prevent biometric e-KYC and issuance of multiple SIM cards in one box; and
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