In recent times, it is surfaced that transnational criminals have created illegal digital payment gateways using mule/rented accounts. The transnational criminals are openly advertising in social media websites such as Meta. These illegal payment gateways are being created by the organized criminals to facilitate money laundering.
The illegal infrastructure facilitating money laundering as a service are used for laundering proceeds of multiple nature of cybercrimes, for examples from online gambling, stock market, crypto currency etc. The organized criminals lure social media users to rent their bank accounts in exchange of money.
There are some posts in Meta that which offers payment for renting Indian Bank Account. There are also posts in Meta promising high returns by investing in stock markets and in crypto currencies. The investors are lured to deposit money in rented accounts.These organized criminals mostly operate from UAE and other tax heavens such as the Caymen Islands.
In some cases, current accounts and saving accounts are scouted through social media such as Meta and Telegram. An illegal payment gateway is created using these accounts for accepting deposits on illegal platforms such as fake investment sites, betting, gambling etc. Thereafter the funds are immediately layered to another account.
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The persons are also deceived in revealing sensitive information such as personal data, banking details, Aadhar card etc. These details are used to create bank accounts linked with illegal payment gateways to deposit the proceeds of crime and later siphoning of the money to offshore banks.
It is advisable to all citizens not to sell and/or rent their bank accounts for any purpose. The Reserve Bank of India and the Ministry of Finance may direct Banks to deploy checks to Identify misuse of bank accounts that are used for setting up illegal payment gateways.
The Banks may be also advised to close the dormant accounts. In most of the cases dormant accounts are used by the organized criminals to park the proceeds of crime. The bulk payout facility by the banks is misused as such the Banks may want to report such illegal transaction. The Banks are also advised to conduct costumer due diligence periodically.
The Reserve Bank of India and the Ministry of Finance may want to advice to the Banks, payment gateways, financial institutions to put a check on the sale of sensitive costumer data. The Government of India, Ministry of Home Affairs may want to advice Meta Inc. and Telegram in India to block such illegal advertisements in India.
OPINION BY : Pankaj Singh, Advocate Supreme Court of India , Former Expert on Mission to the UNHCR