03 sep 2022 Daily Current Affairs - Guru Deekshaa Academy

· Giving the impression that huge sums of money earned through illegal activities, including drug trafficking or terrorist action, come from a legitimate source is known as money laundering.

· The process “launders” the money to make it appear clean because “dirty money” carries a stigma.

· Simply described, it is the process of making money that originates from one source appear to originate from another.

· The American Mafia organisation is where the phrase “money laundering” first appeared. Massive sums of money have been accumulated by mafia organisations through extortion, gambling, etc., and this money is then presented as legal tender. In India, the phrase “hawala transactions” is most usually used to refer to money laundering.

· Global issues like money laundering and terrorism financing not only jeopardise security but also the efficiency, openness, and stability of financial systems, posing a threat to the health of the economy as a whole.

· According to the International Monetary Fund, money laundering generates $590 billion to $1.5 trillion annually, or around two to five percent of global GDP.

· Money laundering can have a disastrous effect on a nation’s economy and social structure, particularly in developing or unstable countries.

· Money laundering is a three-step procedure that conceals unlawful activity under what seems to be a normal financial transaction.

· The first stage of the process begins with the entry of the proceeds of crime into the established financial system. We refer to this as placement; in the second stage, injected funds are stacked and dispersed across a number of transactions to conceal their dubious source. The third and final stage entails the introduction of monies into the financial system with the intention of erasing their initial ties to illicit activity so that the offender or beneficiary can use them as clean funds. This process is known as “layering.” This is an allusion to integration.

· Money launderers now have more access points as a result of the rise in popularity of non-cash payment methods like prepaid cards, online transactions, and mobile payments.

· These new payment methods are susceptible to money laundering activities because of the quick transaction speed and the infrequent face-to-face interactions between the person initiating the transaction and the service provider.

· The increased demand for financial institutions to identify and enrol their customers online is being abused by money launderers.

· The intricacy of trade networks is exploited by trade-based money laundering, which typically occurs in international settings where the interaction of several parties and governments makes CDD procedures and AML checks more difficult.

· The quick growth of financial information, technology, and communication has made it possible for money to flow quickly and easily around the world. This makes fighting money laundering more important than ever.

· It becomes more challenging to pinpoint the source of “dirty money” the farther it penetrates the world banking system.

· It is challenging to make an accurate estimation of the entire amount of money that passes through the laundry cycle due to the covert nature of money-laundering.

· The three Fs—finding, freezing, and forfeiting—of illicitly obtained income and assets—have become more challenging as a result of recent changes to the global banking system.

· The practise of conducting financial transactions in dollars, also known as the “dollarization” of illicit markets, the broader push for financial deregulation, the expansion of the Euromarket, and the establishment of financial secrecy havens are a few examples.

· The financial infrastructure has evolved into a continuously operating worldwide system that allows “megabyte money” (i.e., money in the form of symbols on computer screens) to go anywhere in the world swiftly and easily thanks to advancements in technology and communications.

· Before the Prevention of Money Laundering Act of 2002 (PMLA) was passed in India, the main statutes that included steps to address the issue of money laundering were:

· The 1974 Act to Conserve Foreign Exchange and Prevent Smuggling Activities (COFEPOSA)

· The Prevention of Money Laundering Act, 2002 was passed to outlaw the practise and make provisions for the forfeiture of assets obtained through money laundering.

· The Financial Intelligence Unit-India is required to receive information on such transactions in the prescribed format from banking firms, financial institutions, and intermediaries, as well as to verify and maintain records of all client identities (FIU-IND).

· If a banking business, financial institution, or intermediary—or one of its officers—fails to comply with the Act’s requirements, it gives the Director of FIU-IND the authority to sanction those parties.

· 2015’s Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act:

· by outlining the process for dealing with such income and assets, to address the threat of the black money that exists in the form of undeclared overseas income and assets.

· It intends to broaden the definition of “Benami Transactions” and details the punishment that will be meted out to anyone who engages in one.

· The Prevention of Money Laundering Act gives specific officers of the Directorate of Enforcement the authority to conduct investigations into allegations of money laundering and to seize any associated property.

· As the principal national body in charge of collecting, processing, evaluating, and disseminating information about questionable financial activities, it was founded in India in 2004.

· In order to further the worldwide efforts against money laundering and related crimes, the Financial Intelligence Unit-India (FIU-IND) is also in charge of coordinating and bolstering efforts of national and international intelligence, investigation, and enforcement organisations.

· The Economic Intelligence Council (EIC), which is led by the Finance Minister, receives direct reports from FIU-IND, an independent organisation.

· employing data privacy rules, establishing “White Caps,” and allowing bank websites to look over money transfers.

· Financial institutions should be required to report suspicious transactions since doing so increases the likelihood that money laundering schemes will be discovered by law enforcement.

· Employees of financial institutions need to be trained to recognise potentially suspicious activities.

· Bank workers will find more transactions if they can recognise the traits of money laundering transactions.

· To make sure they are operating legally, financial organisations should be forced to collect extensive client information. A technique like this would make it simpler for banks to identify dubious transactions.

· Big data and artificial intelligence are two equally cutting-edge anti-money laundering tactics that must be used to combat the rising hazards of money laundering made feasible by modern technologies. In order to effectively combat the issue of money laundering, local and foreign parties must collaborate through enhancing methods for exchanging data.

· According to Article 148 of the Indian Constitution, the Comptroller and Auditor General of India holds an independent post (CAG).

· He is the chairman of the Indian Audit and Accounts Department and one of the cornerstones of India’s democratic system of governance.

· As the guardian of the public purse, he is in charge of managing the whole financial system of the country on both the federal and state levels.

· He is in charge of upholding the Indian Constitution and parliamentary laws in the realm of financial management.

· The appointment, oath, and duties of the CAG are covered in broad terms in Article 148.

· Article 149 deals with the responsibilities and powers of the Comptroller and Auditor General of India.

· In accordance with Article 150, the President may specify a format based on recommendations from the CAG for the Union and State accounts.

· The Comptroller and Auditor-General of India’s reports on the Union’s financial statements must be presented to each House of Parliament, per Article 151, at the president’s request.

· Section 279: The calculation of “net proceeds” is determined and certified by the Comptroller and Auditor-General of India, and his or her certificate is final.

· The CAG is chosen via a warrant that is signed and sealed by the President of India.

· Until they turn 65 or for a period of six years, whichever comes first, the CAG serves in that capacity.

· He has the right to quit at any time by submitting a letter to the president.

· He is also vulnerable to dismissal by the president on the same grounds and in the same methods as a Supreme Court justice. In other words, if both Houses of Parliament pass a resolution to that effect with a special majority, either on the grounds of shown wrongdoing or incapacity, the president has the ability to remove him.

· The following clauses have been placed into the Constitution to safeguard and protect CAG’s independence:

· He has a secure tenure and may only be fired with the President’s authority and in accordance with the Constitution’s procedures. As a result, although being chosen by the president, he is not officially in office until the president declares him to be such.

· He is not qualified for any other position after quitting his current one, either with the Indian government or any state.

· His salary and other service requirements are set by the Parliament. His salary is on line with that of a justice on the Supreme Court.

· Neither his pay nor his rights with respect to a leave of absence, pension, or retirement age may be altered adversely after his appointment.

· The administrative expenses of the CAG’s office, such as all employee wages, benefits, and pensions, are paid out of the Consolidated Fund of India. These expenses do not require approval from Parliament.

· No minister may speak in the Parliament (both Houses) on behalf of the CAG or be questioned about any of his actions.

· The CAG audits the accounts of the Consolidated Fund of India, the Consolidated Fund of every state, and the UT with a legislative assembly.

· All expenditures are audited by CAG for the Public Account of India, the Contingency Fund of India, and the Public Account and Contingency Fund of each state.

· The Central Accounting Group (CAG) performs an audit of all trading, manufacturing, profit and loss, balance sheets, and other subsidiary accounts kept by any department of the Central Government and the State Governments.

· All bodies and authorities that are largely funded by Central or State revenues, government corporations, and other corporations and bodies have their revenue and expenses audited by CAG as needed by applicable laws.

· He determines and certifies the net proceeds of any tax or duty, and his certificate is decisive in the issue.

· His audit reports on the Center’s and the State’s accounts are given to the President and Governor, who then provide them to the Houses of Parliament and the State Legislature, respectively.

· He presents the President with three audit reports: one on financial accounts, one on public undertakings, and one on appropriation accounts.

· He serves as the mentor, friend, and philosopher of the Public Accounts Committee of the Parliament.

· The audit reports on public sector undertakings, finance accounts, and appropriation accounts are among the three CAG reports that the PAC examines.

· Furthermore, CAG contributes to the discussions of the committee by providing a list of the topics that demand the PAC’s immediate attention.

· He also helps the committee and the witnesses understand the acts of the government and the committee, respectively.

· The CAG’s position can occasionally be that of an interpreter and translator, communicating to politicians the views of officials and vice versa.

· The CAG is still liable for further matters. He needs to monitor the implementation of the corrective action he suggested. He brings issues to the PAC’s attention when he observes that nothing has been done.

· Independence can be ensured if the conditions are clearly established. Such criteria would include the qualities that a candidate must have in order to be selected as CAG as well as the selection process. The procedure must be transparent.

· Currently, the CAG is chosen by the prime minister after the finance minister submits a shortlist to the Cabinet Secretary.

· The prime minister recommends to the president one candidate from such list. A warrant with the president’s signature and seal is used to appoint the CAG if the president agrees.

· Due to the potential for an interest conflict, such a procedure is defective.

· If the leader of the auditee selects the person to audit his organisation, there is a chance that person could become the CAG, which could diminish accountability.

· Comptroller and Auditor General (CAG) reports have been delayed and are still pending; critics refer to this as being “CAGed”.

· The overall number of CAG reports referring to central government ministries and departments plummeted from 55 in 2015 to just 14 in 2020, a decrease of over 75%, according to a recent answer to a Right To Information (RTI) request.

· The majority of countries have passed laws establishing certain qualifications as well as the process of appointment to ensure that the head of their Supreme Audit Institution operates independently and is not influenced by the Executive, whose performance he is required to evaluate and give an audit opinion on attaining the objectives.

· The Prime Minister and the Chairman of the Committee of Public Accounts shall jointly select the CAG, who will then be confirmed by the House of Commons, according to the Exchequer and Audit Act of the UK, as revised in 1983. Discretion in Appointment:

· India has to set up an institutional mechanism to encourage openness and objectivity in the CAG selection procedure.

· One might compile a list of candidates who meet these requirements. Following that, a high-level committee may evaluate the personalities of the contenders and recommend to the president a list of three candidates, from which only one may be chosen.

· Auditors should have priority access to papers within seven days, similar to the citizen’s right under the RTI Act of 2005 to receive information within a month; if not, heads of departments should be required to provide a justification for the delay.

· Positive developments after the Big Data revolution include the CAG’s publishing of a Big Data management strategy and the opening of a Centre for Data Management and Analytics in Delhi.

· The CAG of India hosted the 2017 Commonwealth Auditors General Conference. Using technology in public audit and environmental audit were the two conference subjects. The conference promoted partnerships between Commonwealth countries for the advancement of public auditing expertise.

· The dependability of Indian CAG is demonstrated by the fact that CAG was able to audit the UN headquarters, which entails various intricate tasks.

· The CAG helps the parliament and state legislatures hold their respective administrations accountable, hence reforms at the CAG office are essential.

· He is one of the foundational elements of India’s democratic political system and, in B.R. Ambedkar’s words, holds the most important position under the Indian Constitution.

· Following the passing of Maharaja Ranjit Singh and the Sikhs’ defeat, the Treaty of Lahore was signed.

· The contract was signed by Governor-General Sir Henry Harding on behalf of the East India Company.

· A pact gave Gulab Singh authority over Kashmir’s territory, and the Dogra family has ruled the area ever since.

· Approximately 77 percent of the people under the control of Hindu Maharaja Hari Singh were Muslims.

· In the mountainous region of Ladakh, Buddhists and minority Shia Muslims ruled.

· Shia Muslims make up a small portion of the population in the geopolitically vital region of Gilgit and Baltistan, which borders China and Afghanistan.

· During the time of India’s political integration and partition, the state’s monarch, Hari Singh, put off making a decision about the destiny of his realm. He decided against affiliating with either Pakistan or India in order to preserve his independence.

· The king was forced to reconsider his attitude after the western areas of the state revolted, which was followed by an invasion by raiders supported by Pakistan from the neighbouring Northwest Frontier Province.

· On October 26, 1947, Hari Singh became a part of India in return for airlifting Indian troops to Kashmir to battle forces backed by Pakistan.

· According to the Instrument of Accession, state governments were required to pass all other laws while the Indian parliament was given authority over issues like defence, foreign policy, finance, and communication.

· After India’s accession, Pakistani troops were driven out of the valley, with the exception of the areas known as Pakistan occupied Kashmir in India and Azad Kashmir in Pakistan.

· The constituent assembly of Jammu and Kashmir met in 1951 to affirm the state’s admission to India and to create the state constitution.

· The constitution of Jammu and Kashmir states, “The state is and shall be an integral part of the Union of India.”

· Mountbatten suggested that the Kashmir issue be brought up before the UN by the Indian government. The UN’s participation in Kashmir led to an agreement on a cease-fire between India and Pakistan.

· The cease-fire line established in is referred to as the “Line of Control” (LOC).

· India and Pakistan are still breaking their truce, according to a UN Military Observer Group.

· A UN resolution calling for a referendum to be held under UN supervision was also accepted when Pakistan withdrew its forces from Kashmir, which is under their control. However, because Pakistan has refused to remove its forces from POK, the election has not yet taken place.

· Since India’s annexation of Kashmir, tensions between the two countries have remained, and this conflict has contributed to regional instability and underdevelopment.

· Through military confrontation, Pakistan has consistently tried to jeopardise the peace in the Jammu and Kashmir region. No matter which war it was—the ones in 1947, 1965, or 1971—Pakistan had suffered severe losses. India significantly contributed to the 1971 war’s separation of Eastern Pakistan, humiliating Pakistan.

· After all of these military encounters, Pakistan realised it would be counterproductive to directly confront India militarily.

· Late in the 1980s, Pakistan launched a separatist and militant insurgency in Kashmir under the cover of jihad. This was done using low-intensity warfare techniques.

· The Jammu and Kashmir Liberation Front (JKLF), a disaffected group of Kashmiris, was used by Pakistan as a weapon of insurrection. Yasin Malik, a JKLF leader who oversaw militancy in Kashmir and demanded the independence of Jammu and Kashmir, later backed diplomacy as a manner of resolving the issue rather than resorting to violence.

· However, infiltration across the border led to the development of new terrorist organisations in the valley, including Hizbul Mujahedeen, Lashkar-e-Taiba, Jaish-e-Mohammed, Harkart-ul-Jehad-e-Islami (Huji), etc., with the help of Pakistan’s ISI.

· The emergence of these terrorist organisations in the valley resulted in ethnic cleansing, which displaced many Kashmiri Pandits and altered the region’s demographics.

· As a result of Pakistan’s overt or covert backing for and training of terrorist organisations in the Jammu and Kashmir region, India currently faces a severe external security threat.

· In addition to Pakistan’s participation, the Indian government failed to provide for the requirements of the local population. The valley became more militant as a result of a lack of development, the militarization of the region, and the contentious state election of 1987, which prompted some state legislators to establish armed insurgent groups.

· Consequently, both of these elements, i.e. (internal and external). Terrorist organisations can readily prey on Kashmiri youth due to a lack of development, education, and employment possibilities. The youth protests against Afzal Guru’s passing and the gathering in favour of terrorist Burhan Wani show how radicalised the Kashmir region has become.

· Unconventional warfare includes conflicts between tribes, small wars, and low-intensity battle. It was done to inflict mental harm on people.

· Low intensity conflict has the ability to sculpt outcomes that direct conflict cannot.

· Armed revolt, guerrilla warfare, political unrest, and an independence war that used irregular warfare strategies are all clear manifestations of Kashmir’s low intensity combat front.

· To destroy the faith of valley dwellers in India, propaganda and other evil strategies are used.

· Terrorists from the other side of the border infiltrate and obstruct the continuing construction efforts in the valley.

· internationalise the Kashmir conflict and accuse India of harbouring religious intolerance at institutions like the UN.

· leveraging locals to gather information Now, locals serve as the terrorist groups’ eyes and ears. They grant these organisations special access to details regarding military installations, bases, and even havens.

· India’s relations with other countries like the USA, France, Israel, Germany, Japan, Australia, Saudi Arabia, and the United Arab Emirates have increased as Pakistan’s influence in international forums has decreased. To prevent coordinated retribution from these countries, Pakistan has switched the targets of its terrorist attacks to Indian military installations. This is demonstrated by recent attacks in Pathankot, Uri, or on military convoys. As the nation’s security readiness has increased over the past few years, attacks on military bases to undermine the security system have morphed into a new Pakistani tactic to kill India with a thousand cuts.

· The Indian armed forces are routinely accused of abusing human rights in the valley by a number of foreign organisations, including Human Right Watch and Amnesty International.

· To bring peace back to the valley, the government launched Campaign All-out, an anti-militancy operation. The shortlisted terrorists’ information and whereabouts were given to the security forces so they could drive them out of Kashmir.

· Following the attack on February 14, 2019, in which the Jaish-e-Mohammed terrorist group killed over 40 CRPF soldiers by using a suicide bomber.

· The Indian Air Force responded to this attack by launching a non-military preemptive attack after knowing about the terrorist camp in the Balakot region. In this attack, numerous terrorist camps were destroyed.

· The rehabilitation and relocation of Kashmiri pandits as well as the referendum in the valley are additional subjects.

· There were immediate plans for a UN-mediated referendum after Pakistan attacked India in 1947. But the referendum was never held since Pakistan never withdrew its troops from the Kashmir region.

· Given the shifting demography of Jammu and Kashmir and the radicalised youth there, a referendum would not be a viable solution, at least not in the near future.

· Pandits from Kashmir emigrated out of the region thirty years ago. They are compelled to live as refugees in their own country. Resettlement in the area won’t be possible unless the area starts to experience economic growth and the security situation gets better.

· In 2017, a person was attached to the hood of a jeep to serve as a shield from stone throwers. International human rights activists denounced this occurrence.

· It is a war crime in accordance with the Geneva Convention and was decried as a barbaric conduct by Amnesty International.

· Security forces can use more compassionate tactics that are just and equitable:

· As non-lethal crowd control tools, police and the military commonly use tear gas, water cannons, pepper spray, and pellet guns.

· Pellet weapons are intended to harm people. They are effective across a short distance of 500 yards, but when fired at close range, they can be lethal and gravely hurt delicate areas.

· Human rights activists do not support pellet weapons, hence safer alternatives ought to be adopted.

· The MHA’s committee on the use of pellet guns issued the following suggestions, all of which are extremely important:

· Instead of using pellet guns to manage crowds, consider non-lethal alternatives like tear gas and chilli grenade shells.

· The administration asked the security forces to use plastic bullets while considering more effective methods in response to a Supreme Court ruling.

· Stone-pelting incidents, which peaked in 2016–17, have decreased in frequency as a result of the NIA’s measures against the Hurriyat leader.

· Armed forces are granted exceptional privileges under the Armed Forces Special Powers Act (AFSPA), including the right to search and detain people without justification.

· Using development as a strategy, the government has begun a variety of initiatives to quell militancy in Kashmir:

· The young people of the valley were intended to be educated in skills when UDAAN was created.

· Improved infrastructure for the transportation, healthcare, renewable energy, tourism, and other industries, as well as the creation of new job opportunities, are the main objectives of PM’s development plan for J&K.

· The construction of tunnels and the creation of institutions like AIIMS, IIT, and IIM will reduce commuting times.

· The Indian Army has launched Project Sadhbhavana to help young people develop their goals.

· The provisions that provide the state of Jammu and Kashmir a special status were removed by presidential proclamation. The articles 370 and 35A were repealed.

· The provisions of the Indian Constitution currently apply to the state of Jammu and Kashmir.

· partitioning the state of Jammu and Kashmir into two separate union regions: Jammu and Kashmir and Ladakh.

· After that ceasefire line was formed, there was a military conflict between India and Pakistan near the Siachen glacier in the Karakoram Range.

· “Operation Meghdoot” was launched by India in 1984 to liberate it from Pakistani army. It is the world’s highest battleground.

· Siachen is an area that frequently makes the headlines for the deaths of military soldiers brought on by the region’s severe weather.

· In order to bring causality and correctly guard the borders, technology should be used.

· Therefore, a comprehensive programme that may fill the gap in public trust in the government is urgently needed.

· T-cell therapy, also known as adoptive cell transfer (ACT), involves the removal of immune cells from the body and the attachment of receptor molecules that will enable them to combat cancerous cells once the re-engineered T-cells are returned into the body.

· They are compelled to identify the antigen (protein) found in cancerous cells.

· In order to limit the spread of cells from the main injured tissue or organ, chemotherapy includes injecting drugs into the bloodstream.

· On the other hand, radiation therapy uses X-rays to destroy the cancerous cells directly in the organ or tissue that is injured.

· Since recent US clinical trials utilising T-cell treatment were successful, this therapy is being hailed as ground-breaking.

· Patients who weren’t expected to live more than 2-4 months were treated with this medicine.

· With more than half of the patients reporting full remission, the outcomes were outstanding. A development in medical science is this.

· T-cells resemble a living medicine because they can stay in a person’s body for their entire life.

· Cytokine release syndrome (CRS) and an overstimulation of the immune system are dangerous adverse effects of T-cell therapy that can result in fever, hypotension, and other illnesses.

· Since it has only been tried on patients with blood cancer so far, it is currently uncertain whether this therapy is effective for treating other types of cancer.

· So, even if this is an amazing development in the fight against cancer, more needs to be done to ensure its effectiveness and the well-being of the patients.

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. No.	Topic Name	Prelims/Mains
1.	About the Money Laundering	Prelims & Mains
2.	Details of the Comptroller and Auditor General of India	Prelims & Mains
3.	About the Militancy in the Kashmir Region	Prelims & Mains
4.	Details of Cell Therapy to treat Cancer	Prelims Specific Topic