UPSC CURRENT AFFAIRS – 3 April 2024

InstaLinks : help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions ina your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically

InstaLinks : help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions ina your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically

Table of Contents:

GS Paper 3:

• Prevention of Money Laundering Act (PMLA): Importance and Concerns

Content for Mains Enrichment (CME)

• Bilingual Braille at Polling Booths

Facts for Prelims (FFP)

• Swell waves

• Negative leap second

• NICES programme

• Indigenous Knowledge – Konda Reddi tribe

• Cardamom

• Tissue culture

• Ozone on Callisto

• Reports in News

• MRI Scan: Image of Human Brain

• Zircon hypersonic missile

Mapping

• Cambodia (cyber-Slavery)

Prevention of Money Laundering Act (PMLA): Importance and Concerns

#### GS Paper 3

Syllabus: Internal Security

Source: TH

Context: The article discusses the Prevention of Money Laundering Act (PMLA), which was initially aimed at combating the laundering of drug money but has expanded to include various unrelated offences over time.

Recently, the Punjab and Haryana High Court clarified that courts can release an accused of money laundering from police custody without fulfilling the conditions mandated by the Prevention of Money Laundering Act (PMLA), 2002

What is Money Laundering?

Money laundering is a process used to hide the origins of illegally obtained money, making it appear legitimate. It involves three stages:

• Placement, where illicit funds enter the financial system

• Layering, where funds are moved through complex transactions to conceal their source

• Integration, where laundered funds are reintroduced as legitimate.

Methods include structuring, trade-based laundering, shell companies, and real estate transactions.

About PMLA:

Need for Prevention of Money Laundering Act (PMLA):

• Global Urgency: Prompted by global concerns over drug trafficking, the PMLA was enacted to prevent the laundering of proceeds from drug crimes, in line with UN conventions.

• Establishment of FATF: Following the establishment of the Financial Action Task Force (FATF) in 1989, measures like the PMLA were adopted to combat money laundering worldwide.

• UNGA Resolution: A 1990 resolution by the UN General Assembly emphasized the need for legislation to prevent drug money laundering, prompting India to enact the PMLA.

• Narasimham Committee Recommendations: Recommendations from the Narasimham Committee highlighted the necessity of addressing money laundering within India’s financial system, contributing to the formulation of the PMLA.

• Adherence to International Standards: The PMLA aligns with international standards and recommendations, ensuring India’s compliance with global efforts to combat money laundering.

• Legislative Authority and Scope: Enacted under Article 253 of the Constitution (it empowers the government to make laws for implementing the international conventions), the PMLA enables India to remain in alignment with world standards on Money Laundering.

Amendment to PMLA: Recently in 2023, the Finance Ministry amended the Prevention of Money Laundering Act (PMLA) and rules in line with the recommendations of the FATF.

Recent amendments made to the Prevention of Money Laundering Act (PMLA):

• Defines PEPs (Politically Exposed Persons): Individuals who have been entrusted with prominent public functions by a foreign country, thereby bringing Indian legal uniformity in line with FATF norms

• For Cryptocurrencies: Virtual digital assets (VDA) trade has been brought under PMLA. New rules mandate crypto exchanges and intermediaries dealing in virtual assets to maintain the KYCs of their clients and report suspicious transactions to financial intelligence units.

• New rules mandate crypto exchanges and intermediaries dealing in virtual assets to maintain the KYCs of their clients and report suspicious transactions to financial intelligence units.

• Due diligence documentation requirements: It has now been extended. It now includes the submission of details such as names of persons holding senior management positions, names of partners, etc.

• Beneficial Owners’: Lowered the threshold for identifying beneficial owners by reporting entities, where the client is acting on behalf of its beneficial owner. The term ‘beneficial owner’ refers to those with the entitlement of more than 25% of shares or capital or profit of the company, which has now been reduced to 10%.

• The term ‘beneficial owner’ refers to those with the entitlement of more than 25% of shares or capital or profit of the company, which has now been reduced to 10%.

• NPOs: Reporting entities are now required to register details of the client if it’s a non-profit organization (NPO) on the DARPAN portal of NITI Aayog.

• Clarification on Proceeds of Crime: Proceeds of Crime now encompass not only property derived from scheduled offences but also from any criminal activity related or similar to the scheduled offence.

• Redefined Money Laundering: Previously dependent on a predicate or scheduled offence, money laundering is now treated as a distinct standalone crime through an amendment.

Crucial Role Played by PMLA:

Role | Examples

Legal Framework | The PMLA provides a legal basis for investigating and prosecuting cases such as the 2G spectrum scam and the AgustaWestland case

Asset Seizure and Confiscation | Enforcement agencies, under the PMLA, have seized assets worth millions of dollars in cases like the Nirav Modi and Vijay Mallya frauds

International Compliance | India’s adherence to FATF recommendations, as mandated by the PMLA, has facilitated international cooperation in cases like the Panama Papers scandal

Financial Intelligence Unit (FIU) Coordination | The FIU-India, established under the PMLA, coordinates with law enforcement agencies to analyze financial data and detect suspicious transactions, contributing to successful prosecutions in cases like the HSBC black money probe

Monitoring Financial Transactions | Mandatory reporting of high-value transactions by banks under the PMLA has led to the detection of suspicious activities, as seen in cases like the INX Media money laundering case

Enhanced Due Diligence | Banks and financial entities, under PMLA regulations, conduct rigorous KYC checks to prevent money laundering e.g., PMC Bank scam

Establishing the Source of Funds | Through PMLA investigations, authorities have been able to establish the source of illicit funds, as seen in cases like the Saradha chit-fund scam

Deterrent to Criminals | High-profile convictions, such as in the Satyam scam, serve as examples of the deterrent effect of PMLA enforcement.

Challenges with PMLA Enforcement:

• Definition of “Proceeds of Crime”: Some argue it’s overly broad, risking the inclusion of lawful transactions.

• Inclusion of Non-Drug Offences: PMLA encompasses offences beyond its original focus, diluting its purpose.

• The burden of Proof on Accused: Critics find the burden of proof unreasonably high, potentially impacting fair trials.

• Concerns of Overreach: E.g., Opposition political parties have alleged misuse of PMLA by ED to arrest party authorities including the sitting CM of Delhi

• Stringent Bail Conditions: In 2018, the Supreme Court found aspects of the PMLA bail provision unconstitutional in Nikesh Tarachand Shah vs Union of India, citing violations of Articles 14 and 21. However, in 2022, the Court upheld the validity of key provisions empowering the Enforcement Directorate (ED) to arrest, conduct searches, seizures, and attach proceeds of crime.

• However, in 2022, the Court upheld the validity of key provisions empowering the Enforcement Directorate (ED) to arrest, conduct searches, seizures, and attach proceeds of crime.

• Lack of Written Communication for Arrest: Arrests without written communication violate constitutional rights. Challenges in PMLA Enforcement:

• Complex Legal Procedures: Legal intricacies can lead to delays and inefficiencies in prosecution.

• Inadequate Training and Resources: Enforcement agencies may lack the necessary resources for effective implementation.

Reforming PMLA, 2002: Key Suggestions

• Parliamentary Committees: Recommended periodic reviews and amendments to the PMLA to address emerging challenges and ensure its relevance and effectiveness.

• Refinement of “Proceeds of Crime” Definition: Define “Proceeds of Crime” precisely to avoid ambiguity.

• Reassessment of Burden of Proof: Evaluate the burden of proof, ensuring fairness and constitutional rights.

• Safeguards Against Officer Overreach: Establish oversight to monitor law enforcement actions.

• Review of Stringent Bail Conditions: Streamline bail procedures without compromising investigations.

• Periodic Review and Amendment: Establish a mechanism for periodic review and amendment of PMLA.

• Enhanced Independence and Transparency of ED: Improve reporting and disclosure of ED activities.

• Public Awareness and Education: Conduct campaigns to educate the public on PMLA’s purpose and procedures.

• Consultative Approach: Engage in open dialogues to address concerns and gather diverse perspectives.

Conclusion:

The PMLA serves as a critical tool in India’s arsenal against money laundering. However, to fully leverage its potential, addressing the challenges in its implementation is essential. By strengthening the framework and execution of the PMLA, India can more effectively combat the complex and evolving nature of money laundering.

Insta Links:

• EDITORIAL ANALYSIS: Questionable searches under the Money Laundering Act

Mains Link:

Discuss how emerging technologies and globalization contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (UPSC 2021)

Bilingual Braille at Polling Booths

#### Content for Mains Enrichment (CME)

Source: Th

Context: Bilingual Braille signage in English and Tamil will be available at all polling stations across 30 Assembly constituencies in the Puducherry Union Territory for the upcoming Lok Sabha election.

This initiative aims to facilitate visually-impaired voters in casting their ballots independently. The Braille signage will contain candidate details, allowing voters to easily identify and vote for their chosen candidate. Additionally, visually impaired voters have the option to bring a companion if they prefer, as per Rule 49N of the Conduct of Elections Rules, 1961.

Ethical values depicted in the scenario:

• Inclusivity: Braille signage ensures equal access to voting.

• Empathy: Independent voting options show understanding for visually impaired voters.

• Transparency: Clear Braille signage enhances electoral process clarity.

• Accountability: Officials ensure support for visually impaired voters.

• Respect: Accommodations reflect dignity and autonomy.

Swell waves

#### Facts for Prelims (FFP)

Source: TH

Context: Coastal areas in southern and central Kerala experienced inundation from swell waves, locally known as ‘Kallakkadal,’ prompting alertness from disaster management authorities.

• The phenomenon is not common for this time of the year, as noted by the fishing community.

Swell waves refer to ocean waves that have travelled over long distances from their area of origin, usually generated by distant weather systems or storms.

These waves typically have a consistent and smooth appearance and can travel thousands of kilometres across the ocean’s surface without breaking.

Swell waves are a significant factor in shaping coastal areas and can cause inundation and erosion when they reach shore.

Negative leap second

#### Facts for Prelims (FFP)

Source: IE

Context: A recent study suggests that the accelerated melting of glaciers and ice sheets in Greenland and Antarctica due to climate change is affecting Earth’s rotation, potentially postponing the need for a “negative leap second” to keep clocks aligned with Coordinated Universal Time (UTC).

• As the redistribution of liquid from melting ice slows down Earth’s rotation, the previously anticipated implementation of the negative leap second in 2026 may be delayed until 2029 or later.

A negative leap second refers to a proposed adjustment to Coordinated Universal Time (UTC) where one second would be subtracted from the standard timekeeping system.

This adjustment was intended to compensate for the Earth’s gradually increasing rotational speed, which would make days slightly shorter over time.

It is opposite of positive leap second (one-second addition to clocks). It is done when length of day is rising (Earth is spinning more slowly).

NICES programme

#### Facts for Prelims (FFP)

Source: TH

Context: The National Information System for Climate and Environment Studies (NICES), operated by ISRO and other ministries, invites Indian researchers to combat climate change.

• Potential areas include Space-based ECVs, Climate Indicators, Climate Change Challenges, and Weather Extremes.

The National Information System for Climate and Environment Studies (NICES) program was conceptualized in 2012 and is operated by the Indian Space Research Organisation (ISRO) and the Department of Space, along with other ministries, under the framework of the National Action Plan on Climate Change.

Its primary objective is to generate and disseminate long-term Essential Climate Variables (ECVs) derived from Indian and other Earth observation satellites, which are essential for understanding Earth’s climate.

Indigenous Knowledge – Konda Reddi tribe

#### Facts for Prelims (FFP)

Source: TH

Context: The indigenous knowledge of the Konda Reddi tribe regarding the Indian laurel tree’s water-storing ability has been confirmed by forest officials in the Papikonda National Park.

• Forest authorities conducted an experiment by cutting the bark of the Indian laurel tree, revealing water splashing out, particularly in the summer, as claimed by the tribe.

• Indian Laurel Tree known as Indian Silver Oak and valued for its timber commercially.

It highlights several ethical values:

• Respect for Indigenous Knowledge.

• Collaboration and Partnership between forest officials and tribes.

• Environmental Conservation

• Sustainability

The Konda Reddi tribe, also known as the Konda Reddiyar or Konda Kapus, is an indigenous community primarily found in the hilly regions of southern India, particularly in the states of Andhra Pradesh and Telangana.

#### Facts for Prelims (FFP)

Source: TH

Context: Large-scale damage to cardamom plantations has been reported in various regions of Kerala due to the drought.

• Farmers are facing significant losses, with many fearing the destruction of their crops if the drought persists.

• The Indian Council of Agricultural Research and Krishi Vigyan Kendra (KVK) Idukki recommend measures such as foliar application of Pigmented Facultative Methylotrophic Bacteria (PPFM) and treating plants to decrease disease incidence to mitigate the impact of the drought on cardamom production.

PPFMs are aerobic, Gram-negative bacteria that use one-carbon compounds like formate, formaldehyde, and methanol as their sole carbon and energy source. They are phylogenetically diverse and belong to the genus Methylobacterium.

PPFMs have been well studied in agricultural systems. They can be applied to seeds and crops as a foliar spray.

Cardamom is a spice made from the seeds of the Elettaria cardamomum plant, also known as green cardamom or true cardamom.

The plant is native to southern India and is part of the ginger family.

Cardamom has a strong, warm flavour that is both spicy and sweet.

Soil and climate

• Soil: It is grown in forest loamy soils, which are usually acidic in nature with a pH range of 5.0–6.5

• This crop can be grown at an elevation from 600 to 1500 m.

• Temperature: 10 to 35 degree C

• Rainfall: 1500 to 4000 mm

• The growth of cardamom is enhanced when planted in humus rich soils with low to medium available phosphorous and medium to high available potassium.

Tissue culture

#### Facts for Prelims (FFP)

Source: Hindustan Times

Context: The forest and wildlife department of Delhi is establishing a tissue culture laboratory at the Asola Bhatti Wildlife Sanctuary to generate saplings of threatened or rare native trees in the city.

• The aim is to grow endangered native trees in a controlled environment and regenerate saplings for species facing regeneration challenges.

Tissue culture is a research tool that involves growing cells or tissues in an artificial environment. It’s also called micropropagation.

Animal tissue culture

This technique involves maintaining and growing isolated cells, tissues, or organs in an artificial environment. It’s used in biomedical research to study the causes of disease.

Plant tissue culture

This technique involves growing plant cells, tissues, or organs in a sterile environment. It’s used to produce clones of a plant. Under the right conditions, a single cell can be used to regenerate an entire plant.

Ozone on Callisto

#### Facts for Prelims (FFP)

Source: TH

Context: An international team, including researchers from India’s PRL Ahmedabad, has discovered evidence of ozone on Jupiter’s moon Callisto, indicating complex chemical processes on icy celestial bodies.

• The study, reveals the chemical evolution of sulphur dioxide ice under ultraviolet irradiation, leading to ozone formation.

• The presence of ozone suggests stable atmospheric conditions on Callisto, potentially conducive to hosting life.

This discovery raises questions about Callisto’s habitability and provides insights into the chemical processes of icy moons in the Solar System.

Reports in News

#### Facts for Prelims (FFP)

Topic | Details

Report on GIFT IFSC (Indian Financial System Code) | Expert Committee on developing GIFT IFSC as ‘Global Finance and Accounting Hub’ submits report to IFSCA

Background: The committee was formed following the Ministry of Finance notification; The notification classified book-keeping, accounting, taxation, and financial crime compliance as ‘financial services’ under the IFSC Act, 2019

GIFT IFSC: Established as SEZ in 2015 in Gujarat; caters to customers outside the domestic economy; deals with flows of finance, financial products, and services across borders

Opportunities: Strong technology-driven outsourcing capabilities; large talent pool of skilled manpower in accounting, etc.; “Accounting and finance services” recognized as one of 12 Champion sectors in services for exports

Recommendations: Proposes new regulation for comprehensive definition of Bookkeeping, Accounting, Taxation, and Financial Crime Compliance Services; allows only registered companies or Limited Liability Partnerships to offer services

About IFSC Authority: Statutory body under IFSC Act, 2019; unified regulator for development and regulation of financial products, services, and institutions in IFSCs in India

IOM Report: A Decade of Documenting Migrant Deaths | International Organization for Migration (IOM) releases report “A Decade of Documenting Migrant Deaths” to mark ten years of IOM’s Missing Migrants Project (MMP)

MMP was launched in 2014 to document deaths and disappearances of people in the migration process towards an international destination

Key Findings: More than one in three migrants from conflict-affected countries; over two-thirds of documented deaths are unidentified; major causes of migrant deaths include drowning, vehicle accidents, suffocation, inadequate shelter, healthcare, etc

What is Migration? Migration refers to the movement of persons away from their place of usual residence, either across an international border or within the State

Consequences of Migration: Intermixing of cultures, urban overcrowding and slum development, changes in resource-population ratio, brain drain from poorer to developed countries for better economic opportunities

Initiatives: Global Compact for Safe, Orderly and Regular Migration (GCM) under UN; India’s measures like Pravasi Bharatiya Bima Yojana, pre-departure orientation training for migrants

About IOM: Intergovernmental organization under the UN; provides services and advice on migration to governments and migrants; established in 1951 as Intergovernmental Committee for European Migration (ICEM) to resettle people displaced by World War II; It has 175 member states including India. It is headquartered in Geneva, Switzerland

MRI Scan: Image of Human Brain

#### Facts for Prelims (FFP)

Source: NDTV

Context: The world’s most powerful MRI scanner, located in France, has produced its first images of the human brain, offering unprecedented precision.

Key feature of MRI Scanner:

• Unprecedented Resolution: In just four minutes, the machine captures highly detailed anatomical images with a resolution of 2 mm in plane and 1 mm slice thickness, equivalent to a few thousand neurons.

• Medical Impact: The detailed imaging capabilities can aid in research on neurodegenerative diseases like Alzheimer’s and Parkinson’s.

• Advanced Detection: The machine facilitates the detection of chemical species like lithium and molecules involved in brain metabolism, enhancing diagnostics and treatment efficacy.

What is an MRI Scanner?

An MRI (Magnetic Resonance Imaging) scanner is a medical device that uses a strong magnetic field and radio waves to generate detailed images of the inside of the body, particularly the soft tissues like the brain, muscles, and organs.

How does it work?

When a patient enters the MRI machine, their body’s hydrogen atoms align with the magnetic field. Radio waves are then used to temporarily disrupt this alignment. When the radio waves are turned off, the hydrogen atoms return to their aligned state, emitting energy that is detected by the scanner.

Different tissues emit different signals based on their hydrogen atom density and molecular environment, allowing the scanner to create detailed images that physicians can use to diagnose various medical conditions.

About Human Brain:

The human brain is the control centre of the body, responsible for processing information, controlling movement, regulating emotions, and enabling consciousness. It consists of billions of neurons, which transmit signals through electrical and chemical processes. The brain is divided into regions that specialize in different functions

• Frontal lobe: It is involved in higher-level cognitive functions such as decision-making, problem-solving, planning, and social behaviour.

• The parietal lobe plays a key role in processing sensory information from the body, including touch, temperature, and pain.

• The occipital lobe is primarily responsible for processing visual information received from the eyes.

• The temporal lobe is involved in various functions, including auditory processing (hearing), memory formation, language comprehension, and emotion regulation.

• The cerebellum is essential for coordinating movement, balance, and posture

• Cerebral cortex for higher cognitive functions

• The brainstem for basic life functions like breathing and heartbeat

Zircon hypersonic missile

#### Facts for Prelims (FFP)

Source: The Print

Context: Russian President confirmed that the 3M22 Zircon hypersonic missile had been used in combat, presenting a new challenge to Ukrainian air defense systems in the ongoing conflict between Russia and Ukraine.

• The Zircon missile, capable of reaching eight times the speed of sound with a range of about 400 kilometers, could potentially evade advanced air defense systems like the US Patriot.

• Powered by a scramjet engine, the Zircon is designed for low-altitude flying and manoeuvrability, making it difficult for detection and interception.

Cambodia (cyber-Slavery)

#### Mapping

Source: BBC

Context: Hundreds of Indians were rescued from cyber-scam factories in Cambodia after being promised jobs but forced into illegal online work (ranging from money laundering to love scams).

About Cyber-Slavery:

Cyber-slavery exploits people in the digital world, luring victims with false job promises and forcing them into online scams. This modern form of human trafficking is emerging as a severe and widespread organized crime.

About Cambodia:

Cambodia is a Southeast Asian nation whose landscape spans low-lying plains, the Mekong Delta, mountains and the Gulf of Thailand coastline. In the country’s northwest are the ruins of Angkor Wat, a massive stone temple complex built during the Khmer Empire.