KP. 2 (FLIRT) VARIANT
The new coronavirus variant, KP.2, also known as FLiRT, has been associated with an increase in COVID-19 cases in the United States, United Kingdom, and South Korea. Genomic surveillance data indicate that this variant has been circulating in India since November 2023. INSACOG, India's genome sequencing consortium, has reported approximately 250 sequences of KP.2 to date.
2. About the KP.2 Variant of the Covid-19 Virus
- KP.2 is a descendant of the JN.1 variant and a sub-variant of the Omicron lineage, featuring new mutations. Nicknamed FLiRT, this designation highlights the letters representing two immune escape mutations that enable the virus to evade antibodies.
- These two mutations on the spike protein disrupt the major sites on the spike protein where antibodies bind and neutralize the SARS-CoV-2 virus. These mutations allow the virus to escape antibodies.
3. Genomic Data on KP.2 in India
- Genomic data from India reveal that a little more than half of the 250 KP.2 genomes sequenced by INSACOG 128 sequences were from Maharashtra, with the highest number of KP.2 sequences identified in March.
- Globally, India has reported the highest proportion of KP.2 sequences. In the past 60 days, KP.2 accounted for 29% of the COVID-19 sequences India uploaded to the Global Initiative on Sharing All Influenza Data (GISAID), the world's largest repository of such sequences.
- Despite the emergence of KP.2, the JN.1 variant remains the dominant strain of SARS-CoV-2 in the country. As of May 14, India had 679 active COVID-19 cases, according to Union Health Ministry data, with one death attributed to the disease in Delhi.
- FLiRT, the KP.2 variant, is known for its ability to evade immunity from vaccines and previous infections. Its symptoms mirror those of earlier variants, including fever, cough, fatigue, and digestive issues.
- Experts are monitoring the variant closely but are not overly concerned at this time. There is no need to worry, These immune escape mutations have been seen before.
- According to the US Centers for Disease Control and Prevention (CDC), there are currently no indications that KP.2 causes more severe illness than other strains.
- This variant, like many of its Omicron predecessors, primarily affects the upper respiratory tract. There is no documented difference in presentations.
- Those affected by the KP.2 variant experience symptoms such as fever or chills, cough, sore throat, congestion or runny nose, headache, muscle aches, difficulty breathing, fatigue, loss of taste or smell, brain fog, reduced alertness, gastrointestinal issues including upset stomach, mild diarrhoea, and vomiting.
- The hospitalisation rates for patients with these symptoms have not been higher than usual.
7. Prevention
- Preventive measures remain consistent with those advised since the onset of the Covid-19 outbreak four years ago. Social distancing and using well-fitting respirators, such as N95 or KN95 masks, in indoor public settings are effective against all variants of the Covid-19 virus.
- Improving airflow and filtration in indoor spaces can also help reduce the concentration of virus particles. Vulnerable groups and individuals in areas with active circulation of the virus should exercise particular caution.
8. Need Booster Shots of Covid-19 Vaccines
- Most COVID-19 vaccines available in India target the original variant of the virus, making additional shots unlikely to be beneficial.
- “In late April, the WHO’s Covid vaccine advisory group recommended using the JN.1 lineage as the antigen for upcoming vaccine formulations, since the FLiRT variants belong to the JN.1 family. However, Indian vaccines have not been updated to include the JN.1 variant, so booster doses in India are unlikely to be effective.
- Most Indians likely do not need a booster because they have probably already experienced repeated infections, including asymptomatic infections with JN.1.
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For Prelims: KP.2 variant, Covid -19, JN.1, Omicron
For Mains:
1. Explain the concept of immune escape mutations and their significance in the context of the KP.2 variant of Covid-19. What challenges do these mutations pose for existing vaccines and future vaccination strategies in India? (250 Words)
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WEST NILE VIRUS
- West Nile Fever (WNF) is a viral infection caused by the West Nile virus (WNV), primarily transmitted to humans through mosquito bites. The virus is named after the West Nile region of Uganda, where it was first identified in 1937.
- The principal vectors of WNV are mosquitoes of the genus Culex, commonly found in areas with stagnant water bodies like paddy fields. The virus circulates in mosquito populations through a transmission cycle involving birds as reservoir hosts.
- Kerala, India, has been endemic for WNV for at least two decades, with sporadic outbreaks reported. The virus can cause outbreaks of acute encephalitis syndrome (AES), particularly during the monsoon season.
- Symptoms of WNF typically include fever, headache, fatigue, myalgia, nausea, vomiting, and swollen lymph glands. Severe cases may progress to neurological complications such as encephalitis or meningitis, collectively known as AES.
3. Diagnostic Challenges of West Nile Fever
- Only 1 in 150 cases affected by the West Nile (WN) virus develops severe disease, with even fewer progressing to encephalitis. According to the World Health Organization (WHO), individuals over 50 years old and certain immunocompromised individuals, such as transplant patients, face the highest risk of severe illness when infected with WNV.
- The West Nile Fever (WNF) has been included in the official surveillance records of Kerala since 2011, with cases reported from almost all districts. Among the districts reporting WN cases this year are Thrissur, Malappuram, Kozhikode, and Palakkad.
- A study published in the Indian Journal of Medical Research in 2017, conducted by B. Anukumar et al., documented the first reported outbreak of acute encephalitis syndrome (AES) in Kerala's Kuttanad region between January and February 1996. This outbreak resulted in 105 cases and 31 deaths, highlighting the historical presence of mosquito-borne diseases in the region.
- During outbreaks associated with the Japanese Encephalitis (JE) virus, which shares antigenic similarity with West Nile (WN) virus, several exceptional features were observed. Unlike the typical seasonality of JE outbreaks in Kerala, these outbreaks occurred at different times of the year. Moreover, the affected demographic skewed towards adult age groups, contrasting with JE's predominant occurrence in children. Notably, an outbreak in 1997 resulted in 121 cases and 19 deaths, suggesting a potential role of the WN virus in these AES cases.
- In 2006, during a major Chikungunya epidemic in the Alappuzha district, where paddy fields and waterlogging are prevalent, suspicions arose regarding the co-circulation of the WN virus due to the high mortality rate observed. However, conclusive evidence of WN virus presence was provided by the National Institute of Virology (NIV) in 2011 during an AES outbreak, with 208 reported cases.
- Recent reports indicate an increasing presence of the WN virus in northern districts of Kerala. This may be attributed to improved diagnostic capabilities or the actual spread of the virus to new areas. Despite advancements, most AES cases are still categorized as AES/JE or JE-WN complex due to limited diagnostic tests available, such as the plaque reduction neutralization test conducted primarily at NIV.
- The WN virus is sustained in a transmission cycle involving mosquitoes and birds, with over 250 bird species serving as reservoir hosts. Kerala's environment, characterized by large stagnant water bodies and migratory birds, creates an ideal ecosystem for WN virus proliferation. Given the rising prominence of mosquito-borne diseases amid climate change, establishing efficient surveillance systems on the One Health platform is crucial to identify emerging WN and similar arboviruses.
- The common crows, known to be highly susceptible to the West Nile (WN) virus, could be contributing to the spread of the virus. This inquiry highlights the need for localized studies to understand the role of avian species, particularly crows, in the transmission dynamics of the WN virus.
- The Kerala health department's perception of the WN virus differs from other mosquito-borne diseases like Japanese Encephalitis (JE) or dengue. While acknowledging WN fever as a concern, they consider it less severe due to its lower mortality rate compared to JE or dengue. Unlike dengue, WN virus outbreaks are not as widespread, partially attributed to the transient viremia in humans, which limits efficient transmission by Culex mosquitoes.
- Although WN virus-related encephalitis is fatal in only about 1% of cases, the long-term neurological consequences are significant. Patients may experience cognitive dysfunction, memory loss, seizures, and motor deficits, as evidenced by a follow-up study. This study highlights the importance of addressing neurological sequelae post-WN infection, especially among individuals over 60 years with comorbidities, to mitigate long-term health risks.
- Studies suggest that the West Nile Virus (WNV) may persist in the kidneys of some individuals even years after infection, potentially leading to chronic kidney disease. This highlights the need for public awareness campaigns to educate individuals about the risks associated with mosquito bites and the importance of adopting personal protective measures to reduce infection risk.
- The absence of systematic epidemiological and entomological surveillance systems poses future risks, as viruses like WNV can adapt to new hosts or mutate to increase virulence. The scarcity of expertise in entomology at the national level exacerbates this issue, with insufficient training available for healthcare professionals entering the field.
- While vector control efforts primarily focus on Aedes mosquitoes responsible for diseases like dengue, Chikungunya, and Zika, other mosquito-borne diseases like filariasis, malaria, and WN/JE remain prevalent due to the lack of effective vector control measures targeting other mosquito species. This underscores the need for comprehensive and integrated vector control strategies beyond Aedes species.
- The rise in climate-sensitive zoonotic diseases emphasizes the importance of investing in science and adopting a One Health approach to infectious disease management. This approach emphasizes the interconnectedness of human, animal, and environmental health, necessitating collaborative efforts across sectors to address emerging health threats effectively.
7. Way Forward
By implementing the strategies, Kerala can strengthen its preparedness and response to the ongoing threat of West Nile Fever and other mosquito-borne diseases, safeguarding the health and well-being of its population.
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For Prelims: West Nile Virus, WHO, Chikungunya, Japanese Encephalitis
For Mains:
1. Discuss the importance of adopting a One Health approach in addressing climate-sensitive zoonotic diseases like West Nile Fever (WNF) in Kerala. Assess the collaborative efforts required across sectors to effectively manage emerging health threats in the region. (250 Words)
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Previous Year Questions
1. Consider the following statements: (UPSC 2017) 1. In tropical regions, Zika virus disease is transmitted by the same mosquito that transmits dengue.
2. Sexual transmission of Zika virus disease is possible.
Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 2. ‘Wolbachia method’ is sometimes talked about with reference to which one of the following? (UPSC 2023) (a) Controlling the viral diseases spread by mosquitoes
(b) Converting crop residues into packing material (c) Producing biodegradable plastics (d) Producing biochar from thermo-chemical conversion of biomass Answers: 1-C, 2-A
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DE-RECOGNITION OF POLITICAL PARTIES
- Section 29A of the Representation of the People Act, 1951 (RP Act), specifies the requirements for the registration of a political party with the Election Commission of India (ECI).
- Any political party seeking registration must submit a copy of its memorandum or constitution. This document must declare that the party will uphold true faith and allegiance to the Constitution of India and adhere to the principles of socialism, secularism, and democracy, while also upholding India's sovereignty, unity, and integrity.
- Registered political parties enjoy several legal benefits, including
- At Present there are 8 national parties, 57 state parties, and 2,764 unrecognised parties registered with the ECI.
- A registered political party is classified as a Registered Unrecognised Political Party (RUPP). However, political parties can be officially recognised as either a 'national' or 'State' party under the provisions of The Election Symbols (Reservation and Allotment) Order, 1968 (Symbols Order) by the Election Commission of India (ECI).
- Recognition as a 'national' or 'State' party is based on criteria such as winning the requisite number of seats and/or obtaining the required percentage of votes in a general election to the Lok Sabha or State Assembly.
- Recognised parties enjoy additional concessions, including the allocation of a reserved symbol during elections and the ability to nominate up to forty 'star campaigners'.
- Less than a third of Registered Unrecognised Political Parties (RUPPs) actively participate in electoral contests. However, the Representation of the People Act (RP Act) does not grant explicit authority to the Election Commission of India (ECI) to deregister political parties for failing to contest elections, conduct inner-party elections, or submit required returns.
- The Supreme Court ruling in the case of Indian National Congress versus Institute of Social Welfare & Ors (2002) clarified that the ECI lacks the authority to deregister political parties under the RP Act. Deregistration is only permissible under exceptional circumstances, such as fraudulent registration, loss of allegiance to the Constitution, or government declaration of unlawfulness.
- RUPPs that abstain from contesting elections raise concerns regarding the potential misuse of benefits, including income tax exemptions and donations, which could be susceptible to exploitation for money laundering activities.
Violations of Model Code of Conduct (MCC)
- The Model Code of Conduct (MCC) prohibits the exploitation of caste and communal sentiments to secure votes. However, recognised political parties have been found guilty of violating these provisions on numerous occasions.
- Recognised political parties have also been implicated in instances of bribing voters or intimidating them to influence election outcomes.
Enforcement Challenges
- Despite instances of MCC violations, the Election Commission's response has been limited. In many cases, the ECI imposes temporary bans on campaigning by party leaders for only short periods, typically two to three days.
5. Recommendations for Addressing the Issues
Empowering the Election Commission of India (ECI)
- The ECI's memorandum for electoral reforms (2016) proposes amendments to grant the ECI the authority to deregister political parties.
- Similarly, the Law Commission's 255th report (2015) on 'Electoral reforms' suggests amendments to allow deregistration of a political party if it fails to contest elections for ten consecutive years.
- These recommendations should be promptly implemented to enhance the ECI's regulatory powers.
Implementation of Law Commission Recommendations
- The suggestions made by the Law Commission regarding the deregistration of political parties that consistently abstain from electoral contests need to be incorporated into electoral laws.
- Such measures would ensure that political parties fulfil their democratic obligations and actively engage in the electoral process.
Enforcement of Existing Provisions
- Under Paragraph 16A of the Symbols order, the ECI possesses the authority to suspend or withdraw recognition of a recognised political party for failing to observe the Model Code of Conduct (MCC) or comply with lawful directives of the Commission.
- This provision, though rarely used, should be enforced rigorously to uphold electoral integrity.
- Strict action under this provision, as demonstrated in the suspension of the National People's Party in 2015, would serve as a deterrent and promote adherence to the MCC.
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For Prelims: Election Commission of India, Model Code of Conduct, Representation of People Act, Law Commission's report, Registered parties, Recognised Parties
For Mains:
1. "The empowerment of the Election Commission of India (ECI) and the enforcement of existing provisions are crucial steps towards ensuring electoral integrity and accountability." Discuss this statement concerning the context of the deregistration of political parties and the enforcement of the Model Code of Conduct. (250 Words)
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Previous Year Questions 1. According to the Representation of the People Act, 1951, in the event of a person being elected to both houses of Parliament, he has to notify within ______ days in which house he intends to function. (Delhi Police Constable 2020)
A. 22 B. 10 C. 20 D. 15
2. The Protection of Civil Rights Act, 1955 extends to (MPPSC 2018)
A. whole of India
B. whole of India except the State of Jammu and Kashmir
C. Union Territories
D. only the- State of Jammu and Kashmir
3. Under the Protection of Civil Rights Act 1955, all offences are (MPPSC 2013)
A. Cognizable B. Bailable C. Compoundable D.Punishment with imprisonment and fine both
4. The right to vote is in which article of the Indian Constitution? (Bihar Forest Guard 2019)
A. Article 322 B. Article 324 C. Article 326 D. Article 330
5. Right to vote and to be elected in India is a (UPSC 2017)
A. Fundamental Right B. Natural Right C. Constitutional Right D. Legal Right
6. Consider the following statements: (UPSC 2017)
Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 3 only
7. The Voter Verifiable Paper Audit Trail (VVPAT) system was used for the first time by the Election Commission of India in (UPSC CAPF 2019) A. North Paravur Assembly Constituency, Kerala
B. Noksen Assembly Constituency, Nagaland
C. Mapusa Assembly Constituency, Goa
D. Nambol Assembly Constituency, Manipur
8. In which of the following options, Electronic Voting Machines were used for the first time during general elections all over India? (Rajasthan Police Constable 2020) A. 2014 B. 1999 C. 2004 D. 2009 9. Which one of the following statements about 'personal liberty' is not correct? (UPSC CAPF 2021)
A. State does not have the authority to deprive any person within the territory of India of his/her personal liberty without any rational basis.
B. Basis of depriving a person of his/her personal liberty must be in accordance with procedures established by law.
C. Personal liberty can be secured by the judicial writ of Habeas Corpus.
D. The majority view of the Supreme Court in A. K. Gopalan vs. State of Madras case invented 'due process of law'.
10. Consider the following statements about Electoral Bond Scheme 2018: (RPSC RAS 2018) (A) The aim of this scheme is to bring about transparency in the funding process of political parties.
(B) Only the political parties recognized by the Election Commission which secured not less than one per cent of the votes polled in the last general election to the House of People or the Legislative Assembly of the State shall be eligible to receive the Electoral Bonds.
(C) Electoral Bonds shall be valid for fifteen calendar days from the date of issue.
(D) The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.
Which of the above statements are correct? A. Only (A) and (B) B. (A), (B), (C) and (D) C. Only (B), (C) and (D) D. Only (A), (C) and (D) Answers: 1-B, 2-A, 3-A, 4-C, 5-C, 6-D, 7-B, 8-C, 9-D, 10-B Mains1. Discuss the role of the Election Commission of India in the light of the evolution of the Model Code of Conduct. (UPSC 2022) |
Source: The Hindu
ARTIFICIAL INTELLIGENCE IN DRUG DEVELOPMENT
The process of developing a drug begins with identifying and validating a target. A target is typically a biological molecule, such as a gene or a protein, to which a drug binds to exert its effect. Most targets are proteins, and only those with ideal docking sites for drug molecules are considered "druggable" proteins.
- In the discovery phase, target proteins are identified, and their sequences are fed into a computer. The computer then searches for the best-fitting drug from a library of millions of small molecules, whose structures are stored in the system. This process relies on known structures of both the target protein and the drug. If these structures are unknown, the computer uses models to predict potential binding sites. This computational approach bypasses the need for time-consuming and costly laboratory experiments that often have a high failure rate.
- Once a suitable protein target and its corresponding drug are identified, the research progresses to the pre-clinical phase. During this stage, potential drug candidates are tested outside of biological systems, typically using cells and animals, to evaluate the drug's safety and toxicity.
- Following successful pre-clinical testing, the drug enters the clinical phase. Initially, it is tested on a small group of human patients to assess its safety. If successful, the testing is expanded to a larger group of patients to evaluate both efficacy and safety.
- After passing clinical trials, the drug undergoes regulatory approval. Once approved, the drug is marketed and continues to be monitored through post-market surveillance to ensure ongoing safety and efficacy.
Artificial Intelligence (AI) has the potential to revolutionize target discovery and drug-target interaction analysis by significantly reducing the time required, increasing prediction accuracy, and saving costs. Recent advancements in AI-based prediction tools, such as AlphaFold and RoseTTAFold, represent breakthroughs in computational drug development.
AlphaFold and RoseTTAFold: A Scientific Breakthrough
Developed by researchers at DeepMind, a Google company, and the University of Washington, U.S., respectively, AlphaFold and RoseTTAFold are based on deep neural networks. These networks utilize vast amounts of input data to generate three-dimensional structures of proteins. In recent years, the upgraded versions of these tools, AlphaFold 3 and RoseTTAFold All-Atom, have further advanced this field.
Capabilities of Upgraded AI Tools
AlphaFold 3, developed jointly by Isomorphic Labs (a DeepMind spinoff), and RoseTTAFold All-Atom, have significantly enhanced capabilities compared to their predecessors. These new versions can predict not only static structures of proteins and protein-protein interactions but also structures and interactions involving any combination of proteins, DNA, RNA, modifications, small molecules, and ions. They employ generative diffusion-based architectures, a type of AI model, to predict structural complexes.
Improved Prediction Accuracy
In a test involving 400 interactions between targets and their small molecule drugs, AlphaFold 3 accurately predicted interactions 76% of the time, compared to 40% accuracy by RoseTTAFold All-Atom. This marked improvement highlights the potential of these AI tools to streamline the drug development process by enhancing the accuracy of drug-target interaction predictions.
4. Drawbacks of AI in Drug Development
Despite the promise and potential AI brings to drug development, there are several limitations and challenges associated with its use.
Limited Accuracy
AI tools, while advanced, can only achieve up to 80% accuracy in predicting drug-target interactions. The accuracy significantly decreases for protein-RNA interaction predictions, highlighting a limitation in the scope of reliable predictions.
Restricted to Early Phases
These AI tools are primarily beneficial for the initial phase of drug development—target discovery and drug-target interaction. They do not eliminate the need for the pre-clinical and clinical development phases, where there is no assurance that AI-derived molecules will succeed.
Model Hallucinations
Diffusion-based architectures, employed by these AI tools, are susceptible to model hallucinations. This issue arises when there is insufficient training data, leading the tool to generate incorrect or non-existent predictions.
Limited Accessibility
Unlike earlier versions of AlphaFold, DeepMind has not released the code for AlphaFold 3. This restriction limits independent verification, broad utilization, and its application for studying protein-small molecule interactions. This lack of transparency and accessibility is a significant drawback for the scientific community.
5. India's AI Landscape in Drug Discovery
Developing advanced AI tools for drug development requires substantial computing infrastructure, particularly high-speed Graphics Processing Units (GPUs) capable of running multiple complex tasks involving long sequences. These GPU chips are expensive and rapidly become obsolete as newer, faster models are released annually.
Infrastructure and Expertise Challenges
India currently lacks the necessary large-scale computing infrastructure to support the development of AI tools in drug development. Additionally, there is a shortage of skilled AI scientists in India, unlike in countries like the U.S. and China. This shortage has hindered Indian researchers from establishing a first-mover advantage in developing AI tools for drug development, despite India's rich history in protein X-ray crystallography, modelling, and other structural biology fields.
Opportunities for Growth
However, India has a growing number of pharmaceutical organizations, which positions the country well to become a leader in applying AI tools for target discovery, identification, and drug testing. By investing in advanced computing infrastructure and cultivating AI expertise, India can leverage its strong foundation in structural biology to make significant contributions to AI-driven drug development.
6. Way Forward
By addressing the critical areas, India can transform its role from a spectator to a frontrunner in the exciting field of AI-driven drug discovery. This will not only benefit the country's own healthcare sector but also contribute to global efforts in developing life-saving medications faster and more efficiently.
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For Prelims: Artificial Intelligence, RNA, AlphaFold, RoseTTAFold, Graphics Processing Units
For Mains:
1. India has a strong foundation in structural biology but lacks the necessary infrastructure for developing cutting-edge AI tools. Suggest a roadmap for India to become a leader in applying AI for drug target discovery and drug testing. (250 Words)
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Previous Year Questions
1. What is the Cas9 protein that is often mentioned in the news? (upsc 2019) (a) A molecular scissors used in targeted gene editing Answer: A |
PREVENTION OF MONEY LAUNDERING ACT (PMLA)
1. Context
2. Why is the PMLA verdict under review?
Specific Concerns
- The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
- The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
- Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
- The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
- The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.
3. Money laundering
- Money laundering is the illegal process of making large amounts of money.
- This money is generated by criminal activity but may appear to come from a legitimate source.
- Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.
3.1. Different stages in money laundering
- Placement: The crime money is injected into the formal financial system.
- Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
- Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated. The money now can be used by the offender as legitimate money.
3.2. Impact of Money Laundering on Economic Development
Money laundering can have a significant impact on economic development by:
- When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
- Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
- Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
- Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
- Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
- Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
- Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.
4. Prevention of Money-Laundering Act, 2002 (PMLA)
The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.
4.1. Key Features of the PMLA
- The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
- The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
- The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
- The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
- The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.
4.2. Significance of the PMLA
The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.
4.3. Challenges in Implementing the PMLA
Despite its significance, the implementation of the PMLA has faced certain challenges, including:
- The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
- There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
- The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.
- The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
- The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
- The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
- Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
- Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
- The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
- Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
- It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
- The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.
5.1. Functions and Roles of ED
- Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
- Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
- Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
- Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.
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For Prelims: Prevention of Money Laundering Act, ED, CBI, Foreign Exchange Management Act,
For Mains:
1. Critically evaluate the Prevention of Money Laundering Act, 2002 (PMLA) in its effectiveness in combating money laundering in India. (250 Words)
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Previous Year Questions
1. Which one of the following is not correct in respect of Directorate of Enforcement? (CDS 2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
2. The Prevention of Money Laundering Act, 2002 become effective since which one of the following dates? (UKPSC RO/ARO 2012)
A. July 2002 B. August 2003 C. July 2004 D. July 2005
3. FEMA (Foreign Exchange Management Act) was finally implemented in the year (UPPSC 2013)
A. 1991 B. 1997 C. 2000 D. 2007
4. The Foreign Exchange Regulation Act was replaced by the ______ in India. (SSC Steno 2020)
A. Foreign Exchange Currency Act
B. Foreign Exchange Finances Act
C. Foreign Exchange Funds Act
D. Foreign Exchange Management Act
5. "Central Bureau of Intelligence and Investigation" is listed in the __________ list given in the Seventh Schedule of the Constitution of India. (SSC CGL 2017)
A. Union B. State C. Global D. Concurrent
Answers: 1-D, 2-D, 3-C, 4-D, 5-A
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