I4C's Inclusion Under PMLA: Strengthening India's Fight Against Cybercrime and Money Laundering
Introduction
In a major policy shift aimed at synchronizing India's fight against cyber-enabled financial crimes, the government has taken a landmark step by bringing the Indian Cyber Crime Coordination Centre (I4C) under the ambit of the Prevention of Money Laundering Act (PMLA). In the notification released in the official gazette on 25th April, 2025, the Department of Revenue, Ministry of Finance, included the Indian Cyber Crime Coordination Centre (I4C) under Section 66 of the Prevention of Money Laundering Act, 2002 (hereinafter referred to as “PMLA”). The step comes as a significant attempt to resolve the asynchronous approach of different agencies (Enforcement Directorate (ED), State Police, CBI, CERT-In, RBI) set up under the government responsible for preventing and often possessing key information regarding cyber crimes and financial crimes. As it is correctly put, "When criminals sprint and the administration strolls, the finish line is lost.”
The gazetted notification dated 25th April, 2025, read as follows:
“In exercise of the powers conferred by clause (ii) of sub-section (1) of section 66 of the Prevention of Money-laundering Act, 2002 (15 of 2003), the Central Government, on being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance, Department of Revenue, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i) vide number G.S.R. 381(E), dated the 27th June, 2006, namely:- In the said notification, after serial number (26) and the entry relating thereto, the following serial number and entry shall be inserted, namely:— “(27) Indian Cyber Crime Coordination Centre (I4C).”.
Outrunning Crime: Strengthening Enforcement through Rapid Coordination
The usage of cyberspace to commit sophisticated financial crimes and white-collar crimes is a one criminal parallel passover that no one was looking forward to. The disenchanted reality of today’s world is that the internet is used for as much bad as it is for good. The internet has now entered the financial domain, facilitating various financial crimes. Money laundering is a financial crime that includes all processes or activities that are in connection with the concealment, possession, acquisition, or use of proceeds of crime and projecting it as untainted money. In the offence of money laundering, there is an intricate web and trail of financial transactions that are hard to track, as they are, and with the advent of the internet, the transactions are often digital, and the absence of crucial information hampers the evidentiary chain. With this new step, the Enforcement Directorate (ED) will now make headway into the investigation with the information exchange under PMLA from and to I4C, removing the obstacles that existed before this notification.
Impact
The decision of the finance ministry has to be seen in terms of all that is happening around the globe, with the rapid increase in sophisticated financial crimes. By formally empowering the I4C to share and receive information with the Enforcement Directorate under PMLA, the government acknowledges the blurred lines between conventional financial crime and cybercrime. It strengthens India’s financial surveillance, where money laundering and cyber fraud are increasingly two sides of the same coin. The assessment of the impact can be made from the following facilitations enabled by the decision:
- Quicker internet detection of money laundering
- Money trail tracking in real time across online platforms
- Rapid freeze of cryptocurrency wallets or assets obtained fraudulently
Another important aspect of this decision is that it serves as a signal that India is finally equipping itself and treating cyber-enabled financial crimes with the gravitas that is the need of the hour. This decision creates a two-way intelligence flow between cybercrime detection units and financial enforcement agencies.
Conclusion
To counter the fragmented approach in handling cyber-enabled white-collar crimes and money laundering, the Indian government has fortified its legal and enforcement framework by extending PMLA’s reach to the Indian Cyber Crime Coordination Centre (I4C). All the decisions and the brainstorming that led up to this notification are crucial at this point in time for the cybercrime framework that India needs to be on par with other countries. Although India has come a long way in designing a robust cybercrime intelligence structure, as long as it excludes and works in isolation, it will be ineffective. So, the current decision in discussion should only be the beginning of a more comprehensive policy evolution. The government must further integrate and devise a separate mechanism to track “digital footprints” and incorporate a real-time red flag mechanism in digital transactions suspected to be linked to laundering or fraud.
Related Blogs
Introduction
Misinformation in India has emerged as a significant societal challenge, wielding a potent influence on public perception, political discourse, and social dynamics. A potential number of first-time voters across India identified fake news as a real problem in the nation. With the widespread adoption of digital platforms, false narratives, manipulated content, and fake news have found fertile ground to spread unchecked information and news.
In the backdrop of India being the largest market of WhatsApp users, who forward more content on chats than anywhere else, the practice of fact-checking forwarded information continues to remain low. The heavy reliance on print media, television, unreliable news channels and primarily, social media platforms acts as a catalyst since studies reveal that most Indians trust any content forwarded by family and friends. It is noted that out of all risks, misinformation and disinformation ranked the highest in India, coming before infectious diseases, illicit economic activity, inequality and labour shortages. World Economic Forum analysts, in connection with their 2024 Global Risk Report, note that “misinformation and disinformation in electoral processes could seriously destabilise the real and perceived legitimacy of newly elected governments, risking political unrest, violence and terrorism and long-term erosion of democratic processes.”
The Supreme Court of India on Misinformation
The Supreme Court of India, through various judgements, has noted the impact of misinformation on democratic processes within the country, especially during elections and voting. In 1995, while adjudicating a matter pertaining to keeping the broadcasting media under the control of the public, it noted that democracy becomes a farce when the medium of information is monopolized either by partisan central authority or by private individuals or oligarchic organizations.
In 2003, the Court stated that “Right to participate by casting a vote at the time of election would be meaningless unless the voters are well informed about all sides of the issue in respect of which they are called upon to express their views by casting their votes. Disinformation, misinformation, non-information all equally create an uninformed citizenry which would finally make democracy a mobocracy and a farce.” It noted that elections would be a useless procedure if voters remained unaware of the antecedents of the candidates contesting elections. Thus, a necessary aspect of a voter’s duty to cast intelligent and rational votes is being well-informed. Such information forms one facet of the fundamental right under Article 19 (1)(a) pertaining to freedom of speech and expression. Quoting James Madison, it stated that a citizen’s right to know the true facts about their country’s administration is one of the pillars of a democratic State.
On a similar note, the Supreme Court, while discussing the disclosure of information by an election candidate, gave weightage to the High Court of Bombay‘s opinion on the matter, which opined that non-disclosure of information resulted in misinformation and disinformation, thereby influencing voters to take uninformed decisions. It stated that a voter had the elementary right to know the full particulars of a candidate who is to represent him in Parliament/Assemblies.
While misinformation was discussed primarily in relation to elections, the effects of misinformation in other sectors have also been discussed from time to time. In particular, The court highlighted the World Health Organisation’s observation in 2021 while discussing the spread of COVID-19, noting that the pandemic was not only an epidemic but also an “infodemic” due to the overabundance of information on the internet, which was riddled with misinformation and disinformation. While condemning governments’ direct or indirect threats of prosecution to citizens, it noted that various citizens who relied on the internet to provide help in securing medical facilities and oxygen tanks were being targeted by alleging that the information posted by them was false and was posted to create panic, defame the administration or damage national image. It instructed authorities to cease such threats and prevent clampdown on information sharing.
More recently, in Facebook v. Delhi Legislative Assembly [(2022) 3 SCC 529], the apex court, while upholding the summons issued to Facebook by the Delhi Legislative Assembly in the aftermath of the 2020 Delhi Riots, noted that while social media enables equal and open dialogue between citizens and policymakers, it is also a tool in the where extremist views are peddled into mainstream media, thereby spreading misinformation. It noted Facebook’s role in the Mynmar, where misinformation and posts that Facebook employees missed fueled offline violence. Since Facebook is one of the most popular social media applications, the platform itself acts as a power center by hosting various opinions and voices on its forum. This directly impacts the governance of States, and some form of liability must be attached to the platform. The Supreme Court objected to Facebook taking contrary stands in various jurisdictions; while in the US, it projected itself as a publisher, which enabled it to maintain control over the material disseminated from its platform, while in India, “it has chosen to identify itself purely as a social media platform, despite its similar functions and services in the two countries.”
Conclusion
The pervasive issue of misinformation in India is a multifaceted challenge with profound implications for democratic processes, public awareness, and social harmony. The alarming statistics of fake news recognition among first-time voters, coupled with a lack of awareness regarding fact-checking organizations, underscore the urgency of addressing this issue. The Supreme Court of India has consistently recognized the detrimental impact of misinformation, particularly in elections. The judiciary has stressed the pivotal role of an informed citizenry in upholding the essence of democracy. It has emphasized the right to access accurate information as a fundamental aspect of freedom of speech and expression. As India grapples with the challenges of misinformation, the intersection of technology, media literacy and legal frameworks will be crucial in mitigating the adverse effects and fostering a more resilient and informed society.
References
- https://thewire.in/media/survey-finds-false-information-risk-highest-in-india
- https://www.statista.com/topics/5846/fake-news-in-india/#topicOverview
- https://www.weforum.org/publications/global-risks-report-2024/digest/
- https://main.sci.gov.in/supremecourt/2020/20428/20428_2020_37_1501_28386_Judgement_08-Jul-2021.pdf
- Secretary, Ministry of Information & Broadcasting, Govt, of India and Others v. Cricket Association of Bengal and Another [(1995) 2 SCC 161]
- People’s Union for Civil Liberties (PUCL) v. Union of India [(2003) 4 SCC 399]
- Kisan Shankar Kathore v. Arun Dattatray Sawant and Others [(2014) 14 SCC 162]
- Distribution of Essential Supplies & Services During Pandemic, In re [(2021) 18 SCC 201]
- Facebook v. Delhi Legislative Assembly [(2022) 3 SCC 529]
Introduction:
Technology has become a vital part of everyone’s life nowadays, it occupies essential activities of a person’s life whether we are working or playing and studying. I would say from education to corporate, technology makes everything easier and simpler to achieve the goals for a particular thing. Corporate companies are using technology for their day-to-day work and there are many law-based foundations that are publishing blogs and papers for legal awareness, many lawyers use internet technology for promoting themselves which amounts to growth in their work. Some legal work can now be done by machines, which was previously unthinkable. Large disputes frequently have many documents to review. Armies of young lawyers and paralegals are typically assigned to review these documents. This work can be done by a properly trained machine. Machine drafting of documents is also gaining popularity. We’ve also seen systems that can forecast the outcome of a dispute. We are starting to see machines take on many tasks that we once thought was solely the domain of lawyers.
How to expand law firms and the corporate world with the help of technology?
If we talk about how lawyers’ lives will be impacted by technology then I would explain about law students first. Students are the one who is utilizing the technology at its best for their work, tech could be helpful in students’ lives. as law students use SCC online and manupatra, which are used for case laws. And during their law internships, they use it to help their seniors to find appropriate cases for them. and use it as well for their college research work. SCC and manupatra are very big platforms by which we can say if students use technology for their careers, it will impact their law career in the best ways.
A lawyer running a law firm is not a small task, and there are plenty of obstacles to that, such as a lack of tech solutions, failure to fulfil demands, and inability to innovate, these obstacles prevent the growth of some firms. The right legal tech can grow an organization or a law firm and there will be fewer obstacles.
Technology can be proven as a good mechanism to grow the law firm, as everything depends on tech, from court work to corporate. If we talk about covid during 2020, everything shifted towards the virtual world, court hearings switched to online mode due to covid which proved as a bone to the legal system as the case hearings were speedy and there was no physical contact due to that.
Legal automation is also helping law firms to grow in a competitive world. And it has other benefits also like shifting tedious tasks from humans to machines, allowing the lawyer to work on more valuable work. I would say that small firms should also need to embrace automation for competition in the corporate sector. Today, artificial intelligence offers a solution to solve or at least make the access-to-justice issue better and completely transform our traditional legal system.
There was a world-cited author, Richard Susskind, OBE, who talked about the future of law and lawyers and he wrote a book, Online Courts and the Future of Justice. Richard argues that technology is going to bring about a fascinating decade of change in the legal sector and transform our court system. Although automating our old ways of working plays a part in this, even more, critical is that artificial intelligence and technology will help give more individuals access to justice.
The rise of big data has also resulted in rapid identification systems, which allow police officers to quickly see an individual’s criminal history through a simple search.The FBI’s Next Generation Identification (NGI) system matches individuals with their criminal history information using biometrics such as fingerprints, palm prints, iris recognition, and facial recognition. The NGI’s current technologies are constantly being updated, and new ones are being added, to make the NGI the most comprehensive way to gather up-to-date information on the person being examined
During covid, there were e-courts services in courts, and lawyers and judges were taking cases online. After the covid, the use of technology increased in the law field also from litigation to corporate. As technology can also safeguard confidential information between parties and lawyers. There was ODR, (online dispute resolution) happening meetings that were taking place online mode.
File sharing is inevitable in the practice of law. Yet sometimes the most common ways of sharing (think email) are not always the most secure. With the remote office, the boom has come an increased need for alternate file-sharing solutions. There is data encryption to protect data as it is a reliable method to protect confidential data and information.
Conclusion-
Technology has been playing a vital role in the legal industry and has increased the efficiency of legal offices and the productivity of clerical workers. With the advent of legal tech, there is greater transparency between legal firms and clients. Clients know how many fees they must pay and can keep track of the day-to-day progress of the lawyer on their case. Also, there is no doubt that technology, if used correctly, is fast and efficient – more than any human individual. This can prove to be of great assistance to any law firm. Lawyers of the future will be the ones who create the systems that will solve their client’s problems. These legal professionals will include legal knowledge engineers, legal risk managers, system developers, design thinking experts, and others. These people will use technology to create new ways of solving legal problems. In many ways, the legal sector is experiencing the same digitization that other industries have, and because it is so document-intensive, it is actually an industry that stands to benefit greatly from what technology has to offer.
Tech News overview
Recently, the TRAI has passed some recommendations that benefit the telecommunications industry in India. The suggestion is to lower the entry fees and bank guarantees on the 26th of July 20, 2022. Then wrote a few consulting papers, countering comments by the stakeholders of various companies.
In a significant move, TRAI (Telecom Regulatory Authority of India) has proposed spacious changes in terms of entry fees and bank guarantees in the telecom sector. These endorsements have been abeyant to escort the new era of competition, investment, and innovation, reshaping India’s telecommunication landscape.
Proposal Points by TRAI to telecom companies:
As we dive into considering the recommendations by TRAI into the crucial aspects of the telecom industry, deliberate about the significance of entry fees, the importance of banks, and the guarantees.
- Entry fees: Entry fees are the advance key point that upholds the charges that telecom companies pay to the government when they want to offer services to the civilians of the country. The amount they pay is quite hefty and usually non-refundable.
- Bank guarantee: An important factor that is also a type of security, the financial security that assures the telecom companies to fulfil their financial obligations and follow the regulations and policy conditions specified in their license agreement.
- TRAI roleplay: The Telecom Regulatory Authority of India is an authority responsible for supervising the telecom industry in the country. Making sure that the regulations and recommendations such as entry fees and bank guarantees are working in the proper way or not, a supervision of such things.
- Expected outcomes: TRAI focuses on reducing the entry fees for various types of licenses in the other telecom sector. This step encourages other new telecom operators to enter the market and increase the fair price and investment, which leads to enhancing the competition.
- Consolidating Bank guarantees: TRAI also proposed an amalgamation of bank guarantees, which means telecom companies are required to maintain separate guarantees for different business licenses, which makes business doing sectors an easy environment.
- No entry fee at the time of License Renewal: Recommendations by TRAI by not charging any entry fees when telecom operators renew their licenses. This step can reduce the financial burden on both existing and new entrants,, specifically for UL(VNO)license shareholders.
Reshaping the telecom panorama:
Recommendation by TRAI that can potentially help in reshaping the Telecoms landscape in India in various aspects:
- Increment in healthy Competition: By reducing the entry fees, TRAI would be creating a platform profitable and affordable for new market players in India.
- Market enlargement: Lowering the entry fees might lead to the participation of new entrants, including regional and smaller players,, to get involved in the telecom industry.
- Due to the market expansion, the outcomes can potentially lead to improved access to telecom services in underdeveloped areas and regions and contribute to digital inclusion.
- Job Recruitment: The evolution in the telecom industry due to new operators and increased investment can lead to job uplift in both telecom and industries related to technological infrastructure.
- Choice of preference: As there is a rise in competition, consumers are likely to have many choices when it comes to telecom service providers. The consumers get to select from a wider range of services, leading to better value for money and quality of service.
- Quality of service: With increased competition and a hefty amount of investment, telecom operators have a spur to enhance the quality of service.
Conclusion:
In conclusion, TRAIs proposal on lowering the entry fees and bank guarantee for financial services marks a significant milestone in India’s telecom industry. These essential changes hold the promise of fostering competition, investment, a platform for new entrants, quality of service, wider range of platforms for selection. As these advance suggestions take place, in telecom industry in India is on a new threshold of an existing transformation that could reevaluate the way we communicate and connect.
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