Raksha Bullion is involved in the money laundering case. The AML Watchdog ED has investigated the case in detail.
WHAT IS DIRECTORATE OF ENFORECEMENT?
The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include enforcement of the following: Prevention of Money Laundering Act,2002, Foreign Exchange Management Act,1999, Fugitive Economic Offenders Act,2018, Foreign Exchange Regulation Act,1973 and Sponsoring agency under COFEPOSA.
WHAT IS PREVENTION OF MONEY LAUNDERING ACT?
An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. Whosoever directly or indirectly attempts to indulge or knowingly assist or knowingly is a part or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.
How does Money Laundering Work?
Money laundering plays a major role for the criminal organization to curb the illegal activities that are taking place. To deal with the huge amount of cash is regarded as dangerous. The criminals are searching different ways to deposit there money in the legitimate financial institutions.
There are number of ways to launder money from a very simple to complex thing. Smurfing is regarded as one of the common form of money laundering. In smurfing the criminals distributes the large number of cash. The Money Laundering can be fulfilled by using the different type of currency exchanges.
ABOUT Raksha Bullion CASE
ED had search operations at 4 premises of M/s Raksha Bullion and M/s Classic Marbles. The search operations were conducted in connection with the money laundering case of M/s Parekh Aluminex Limited.
ED had recorded money laundering case against M/s Parekh Aluminex Limited on 08/03/2018 under provisions of Prevention of Money Laundering Act. The company defrauded banks and took loans of Rs. 2296.58 Crore and same was siphoned off by layering through various companies. The money was routed to various accounts in context of providing unsecured loans and investments. And this was not the purpose of taking loans and there were no agreements in place for these transactions. Earlier ED had attached amount of Rs. 46.97 Crore on 25/06/2019 and Rs. 158.26 Crore on 11/09/2019 in this case.
During search operation, keys of private lockers were found at the premises of M/s Raksha Bullion. It was found that the locker operation was done without following norms. KYC was not followed and no CCTV cameras were also not installed at the premises and even In and Out registered were not maintained.
After searching the locker premises it was found that there were 761 lockers out of which 3 belonged to M/s Raksha Bullion. Searching lockers it revealed 91.5 kg gold and 152 Kg of silver in 2 lockers and addition to this 188 kg of silver was also found at the premises of M/s Raksha Bullion and all these were seized. The total value of seized items was Rs. 47.76 Crore.
