January 21, 2016
The beleaguered NSEL has new trouble. The now defunct commodity spot exchange has been asked to cough up Rs 1.66 crore penalty by the Financial Intelligence Unit, a nodal agency that tracks the flow of back money.
FIU says that NSEL was supposed to report details of transactions conducted at its platform to the FIU, as all banks and brokers do. The notice says that NSEL failed to adhere to its obligations under Prevention of Money Laundering Act (PMLA) despite knowing fully well that operations at it platform and that of its members were fully vulnerable to money laundering.
Among other things, FIU has charged NSEL for not furnishing details of its members who are also intermediaries as per the provisions of PMLA. NSEL, the notice says, also failed to evolve a mechanism for detecting and furnishing suspicious transaction reports resulting in failure to examine 134 contracts that were in operation during the period from 15 February 2013 to 31 July 2013.