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Last Updated : Mar 12, 2018 12:45 PM IST | Source: Moneycontrol.com

50 NRIs receive ED notices over suspicious bank transfers: Report

These notices have been issued under the Prevention of Money Laundering Act have been sent based on information received by FIU.

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The Enforcement Directorate has sent notices to nearly 50 NRIs in the past three months over suspicious overseas remittances or irregular fund movements within their bank accounts, according to a report in The Economic Times. 

“There are cases where source of earning is unknown, more than permissible amount has been remitted, money has gone into trading of land, while round tripping is suspected in some transactions,” an ED official told the paper.

The list of NRIs include people are settled abroad for years and have invested in properties, fixed deposits, stocks and other assets in India over a period. They either redeem these investments or sell them from time to time and transfer the money to their bank accounts abroad.

These notices, which have been issued under the Prevention of Money Laundering Act, have been sent based on information received by FIU or Financial Intelligence Unit, the central national agency responsible for receiving, processing, analysing and disseminating information relating to suspect financial transactions.

“We are pursuing the alerts received from FIU,” the person quoted above told the paper.

Apart from notices being sent to NRIs with suspicious bank transactions, the Enforcement Directorate has called people for questioning, the report said.

NRIs have the provision to use three to four kinds of bank accounts to manage funds in India. Non-resident ordinary (NRO) savings account is a rupee account where one can maintain and manage income earned in India such as rent, dividends, pension and so on.  These accounts can be opened with funds either remitted from abroad or generated in India.

A maximum of Rs 10 lakh can be remitted overseas from NRO account in a financial year after submitting a self-declaration form signed by the account holder and a certificate from a chartered accountant.

A non-resident external (NRE) rupee accounts are opened for the purpose of depositing income earned overseas. They may be opened/ maintained in the form of savings, current, recurring or fixed deposit accounts and other funds from abroad. Money lying in NRE account (unlike NRO) can be freely repatriated.

If the money coming into an NRO account is on the back of fraudulent property or security documents, or the NRE account has been used to bring back the money that was sent abroad via hawala, such trasactions are recorded as violations under PMLA.

Such fraudelant transactions are to be checked by banks and central national agencies such as FIU.
First Published on Mar 12, 2018 12:36 pm
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