Deepak UPSC Notes

2022-02-24 02:21:12 PMLA Amendment Act, 2012 Ochish/sharhlash

2022-02-24 02:21:12 Misuse of Prevention of Money Laundering Act

GS Paper - 3

Money Laundering

Challenges to Internal Security Through Communication Networks

Why in News

The Supreme Court (SC) is examining allegations of rampant misuse of Prevention of Money Laundering Act 2002 (PMLA) by the government and the Enforcement Directorate (ED).

What are the Major Allegations?

Being Used for Ordinary Crimes:

PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.

PMLA was enacted in response to India’s global commitment (including the Vienna Convention) to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined

PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from trade in narcotics.

Currently, the offences in the schedule of the Act are extremely overbroad, and in several cases, have absolutely no relation to either narcotics or organised crime.

Lack of Transparency and Clarity:

Even the Enforcement Case Information Report (ECIR) - an equivalent of the FIR - is considered an “internal document” and not given to the accused.

The ED treats itself as an exception to these principles and practises [of criminal procedure law] and chooses to register an ECIR on its own whims and fancies on its own file.

There is also a lack of clarity about ED’s selection of cases to investigate. The initiation of an investigation by the ED has consequences which have the potential of curtailing the liberty of an individual

What is the Prevention of Money Laundering Act?

PMLA (Amendment) Act, 2012:

Adds the concept of ‘reporting entity’ which would include a banking company, financial institution, intermediary etc.

PMLA, 2002 levied a fine up to Rs 5 lakh, but the amendment act has removed this upper limit.

It has provided for provisional attachment and confiscation of property of any person involved in such activities.

What is Money Laundering?

About:

Money laundering is the process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.

Criminal activities like illegal arms sales, smuggling, drug trafficking and prostitution rings, insider trading, bribery and computer fraud schemes produce large profits.

Thereby it creates the incentive for money launderers to "legitimise" the ill-gotten gainsthrough money laundering.

The money generated is called 'dirty money' and money laundering is the process of conversion of 'dirty money', to make it appear as 'legitimate' money.

Some of the Common Methods of Money Laundering:

Bulk Cash Smuggling, Cash Intensive Businesses, Trade-based laundering, Shell companies and trusts, Round-tripping, Bank Capture, Gambling, Real Estate, Black Salaries, Fictional Loans, Hawala, False invoicing.

What is the Enforcement Directorate?

Directorate of Enforcement is a specialised financial investigation agency under the Department of Revenue, Ministry of Finance..

On 1st May 1956, an ‘Enforcement Unit’ was formed, in the Department of Economic Affairs, for handling Exchange Control Laws violations underForeign Exchange Regulation Act, 1947.

In the year 1957, this Unit was renamed as ‘Enforcement Directorate’.

ED enforces the following laws:

Foreign Exchange Management Act,1999 (FEMA)

Prevention of Money Laundering Act, 2002 (PMLA) Ochish/sharhlash

2022-02-24 02:21:12 Nord Stream Ochish/sharhlash

2022-02-24 02:21:12 Ukraine, Luhansk, Donetsk Ochish/sharhlash

2022-02-24 02:21:12 USSR, Heartland, Rimland Ochish/sharhlash

2022-02-24 02:21:11 The new agreement had provisions for an immediate cease-fire, withdrawal of heavy weaponry, OSCE monitoring, dialogue on interim self-government for Donetsk and Luhansk, in accordance with Ukrainian law.

It also had provisions related to acknowledgement of special status by parliament, pardon and amnesty for fighters, exchange of hostages and prisoners, humanitarian aid etc.

However, these provisions have not been implemented because of what is popularly known as the ‘Minsk Conundrum’. This essentially means that Ukraine and Russia have contradictory interpretations about the agreement.

What is the Stand of Different Nations on the Issue?

The United States has already announced sanctions prohibiting “new investment, trade, and financing by US persons to, from, or in” the two breakaway regions.

Japan is likely to join the US-led sanctions while French officials have been quoted as saying in reports that the European Union (EU) is also in discussions for punitive actions against Russia.

The EU has condemned Russia over “a blatant violation of international law as well as of the Minsk agreements.”

The United Kingdom has also warned of further sanctions. Australia also called Russia’s actions unacceptable, it's unprovoked, it's unwarranted.

What is India’s Stand on the Issue?

India did not join the Western powers’ condemnation of Russia’s intervention in Crimea and kept a low profile on the issue. Ochish/sharhlash

2022-02-24 02:21:11 Russia Recognises Rebel Regions of Ukraine as Independent

GS Paper - 2

Bilateral Groupings & Agreements

Effect of Policies & Politics of Countries on India's Interests

Why in News?

Recently, Russia recognised the Ukraine rebel regions in eastern Ukraine - Donetsk and Luhansk – as independent areas despite calls from the west to put an end to the tensions driven by fears that Russia may attack Ukraine.

This paved the way to provide them military support — a direct challenge to the West that will fuel fears that Russia could imminently invade Ukraine.

Tensions have peaked over the last few weeks as Russia amassed over 1,50,000 troops at Ukraine borders in one of the worst crises since the Cold War.

The announcement shatters a 2015 peace deal signed in Minsk requiring Ukrainian authorities to offer a broad self-rule to the rebel regions

What is Russia's Stand?

It blamed the North Atlantic Treaty Organisation (NATO) for the current crisis and called the US-led alliance an existential threat to Russia.

Charged that Ukraine had inherited Russia’s historic lands and after the Soviet collapse was used by the West to contain Russia.

It wants Western Countries to guarantee that NATO won’t allow Ukraine and other former Soviet countries to join as members.

It has also demanded the alliance halt weapons deployments to Ukraine and roll back its forces from Eastern Europe.

The western countries have rejected the demand.

What is the Background of the Crisis?

Ukraine and Russia share hundreds of years of cultural, linguistic and familial links.

For many in Russia and in the ethnically Russian parts of Ukraine, the shared heritage of the countries is an emotional issue that has been exploited for electoral and military purposes.

As part of the Soviet Union, Ukraine was the second-most powerful Soviet republic after Russia, and was crucial strategically, economically and culturally. 

The Donbass region, comprising the Donetsk and Luhansk oblasts of Ukraine, has been at the centre of the conflict since March 2014 when Moscow (Russia) invaded and annexed the Crimean Peninsula.

In April, pro-Russia rebels began seizing territory (with Russia supporting them through hybrid warfare) in Eastern Ukraine and in May 2014, the rebels in the Donetsk and Luhansk regions held a referendum to declare independence from Ukraine.

Since then, these predominantly Russian speaking regions (more than 70% speak Russian) within Ukraine have been witnessing shelling and skirmishes between the rebels and Ukrainian forces leading to the loss of over 14,000 lives by most estimates, creating around 1.5 million registered Internally Displaced Persons (IDPs) and destruction of the local economy.

What has changed now is that the shelling has intensified since last October 2021 when Russia began amassing troops along the borders with Ukraine.

If the situation in the Donbass escalates, the possibility of a war cannot be dismissed. One way to prevent the outbreak of a war would be to implement the Minsk agreements immediately, as Russia has suggested.

What are the Minsk Agreements?

There are two Minsk agreements, Minsk 1 and Minsk 2, named after the Belarussian capital Minsk where the talks were held.

Minsk 1:

Minsk 1 was written in September 2014 by the Trilateral Contact Group on Ukraine, i.e. Ukraine, Russia, and the Organisation for Security and Co-operation in Europe (OSCE) with mediation by France and Germany in the so-called Normandy Format.

Under Minsk 1, Ukraine and the Russia-backed rebels agreed on a 12-point ceasefire deal, which included prisoner exchanges, delivery of humanitarian assistance, and the withdrawal of heavy weapons.

However, due to violations by both sides, the agreement did not last long.

Minsk 2:

As the rebels moved further into Ukraine, in February 2015, representatives of Russia, Ukraine, the OSCE and the leaders of Donetsk and Luhansk signed a 13-point agreement , now known as the Minsk 2 accord. Ochish/sharhlash

2022-02-24 02:21:11 India and UAE Ochish/sharhlash

2022-02-24 02:21:11 In 2019, UAE awarded the ZAYED Medal, their highest civilian award, to the Prime Minister of India for consolidating the long-standing friendship and joint strategic cooperation between the two nations.

The Indian Prime Minister’s visit to the UAE in August 2015 marked the beginning of a new and comprehensive and strategic partnership.

Economic Relations:

India-UAE trade was around USD 60 billion making UAE, India’s third-largest trading partner for the year 2019-20 after China and the USA.

The UAE is the second-largest export destination of India with an amount of over USD 29 billion for the year 2019-20.

For the UAE, India is the second-largest trading partner for the year 2019 with an amount of around USD 41.43 billion for non-oil trade.

Cultural Relations:

The two nations share historical ties and havemaintained regular cultural exchanges both at official and popular levels.

They signed a Cultural Agreement in 1975 and the embassies continue to organise various cultural activities on their own as well as by collaborating with other cultural organisations.

Indian Community:

The UAE is home to the Indian expatriate community of more than 2.6 million, the largest expatriate community in the UAE, which has played a major role in the economic development of the UAE. Ochish/sharhlash

2022-02-24 02:21:11 India- UAE Virtual Summit

GS Paper - 2

GS Paper - 3

India and its Neighbourhood

Bilateral Groupings & Agreements

Why in News?

Recently, a virtual summit was held between India and the United Arab Emirates (UAE).

Earlier in September 2021, India and the UAE formally launched negotiations on the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

What are the Key Highlights of the Meeting?

Comprehensive Strategic Partnership: Issued a Joint Vision Statement "Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.

The Statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes.

The shared objective is to promote new trade, investment and innovation dynamics in diverse sectors.

Defence and Security: Agreed to enhance maritime cooperation contributing to maintenance of peace and security in the region.

Reaffirmed joint commitment to fight against extremism and terrorism, including cross-border terrorism, in all forms, at both regional and international levels.

Climate Action and Renewables: Agreed to support each other’s clean energy missions and establish a joint Hydrogen Task Force to help scale up technologies, with special focus on production of Green Hydrogen.

Emerging Technologies: Agreed to expand cooperation on critical technologies and mutually promote e-businesses and e-payment solutionsand promote start-ups from both countries.

Education Cooperation: Agreed to establish anIndian Institute of Technology in the UAE.

Health Cooperation: Decided to collaborate in research, production and development of reliable supply chains for vaccines and enhance investments by UAE entities in the health infrastructure in India as well as collaborate in providing healthcare in underprivileged nations.

Food Security: Acknowledged the need to enhance the resilience and reliability of food supply chains.

Also decided to expand cooperation through enhanced bilateral food and agriculture tradeand, promote and strengthen the infrastructure and dedicated logistic services connecting farms to ports to final destinations in the UAE.

Skills Cooperation: Agreed to enhance cooperation in skill development so as to align with the market needs and address the changing needs for the future of work.

Released Joint Commemorative Stamp on the occasion of 75th anniversary of India's independence and 50th year of UAE's foundation.

Comprehensive Economic Partnership Agreement (CEPA): In a significant development, the two sides inked a CEPA to further boost trade and investment ties.

Plastic, agriculture, food products, automobile, engineering, pharmaceuticals are some of the areas that will be boosted because of the pact.

The deal will open up to 10 lakh jobs for the young people in the country and would also open access to broader African and Asian markets for India.

The CEPA is expected to increase bilateral trade from the current level of USD 60 billion to USD 100 billion in the next five years (2022-27).

What is CEPA?

It is a kind of free trade pact which covers negotiation on the trade in services and investment, and other areas of economic partnership. It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and Intellectual Property Rights.

Partnership agreements or cooperation agreements are more comprehensive than Free Trade Agreements.

CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.

India has signed CEPAs with South Korea and Japan.

What is the Current State of India-UAE Relations?

About:

India and the UAE enjoy strong bonds of friendship based on age-old cultural, religious and economic ties between the two nations.

The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in 1971.

Political Relations: Ochish/sharhlash