CYBERCRIME CENTRE I4C UNDER PMLA: INTERNAL SECURITY

CYBERCRIME CENTRE I4C UNDER PMLA: INTERNAL SECURITY

NEWS: Govt. brings cybercrime centre I4C under PMLA

WHAT’S IN THE NEWS?

The government has empowered the Indian Cyber Crime Coordination Centre (I4C) to share information with the Enforcement Directorate under the Prevention of Money Laundering Act, enhancing coordination to trace financial trails in cyber frauds. This marks a significant step in linking cybercrime investigation with anti-money laundering enforcement.

Context: Strengthening Cybercrime–Money Laundering Linkages

  • The Indian Cyber Crime Coordination Centre (I4C) has been empowered to share and receive information with the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA), 2002.
  • This integration aims to trace financial trails of cyber frauds and identify masterminds, particularly in cross-border cybercrime operations.

1. About the Indian Cyber Crime Coordination Centre (I4C)

  • Launched by the Ministry of Home Affairs to tackle cybercrime in a coordinated and comprehensive manner.
  • Provides a centralised framework to support states and union territories through research, training, investigation, and technology solutions.
  • Seven regional Joint Cyber Coordination Teams operate from key cybercrime hotspots:
  • Mewat, Jamtara, Ahmedabad, Hyderabad, Chandigarh, Visakhapatnam, Guwahati.

2. Role of the Enforcement Directorate (ED)

  • Established: Originally formed in 1956 as the Enforcement Unit, later renamed as ED in 1957.
  • Mandated with enforcement of:
  • FEMA, 1999: A civil law regulating foreign exchange and cross-border trade.
  • PMLA, 2002: A criminal law to detect and penalize money laundering.
  • Fugitive Economic Offenders Act (FEOA), 2018: Targets absconding offenders involved in large economic frauds.
  • The ED plays a multidisciplinary investigative role, especially in complex transnational financial crimes and terror funding cases.

3. Legal Development: Inclusion under PMLA

  • The Revenue Department included I4C under Section 66 of the PMLA, officially authorizing information exchange between I4C and ED.
  • This will help ED trace money trails in cyber frauds, especially those involving international transfers and crypto-based laundering.

4. What is Cybercrime?

  • Cybercrime refers to criminal activities involving computers, digital devices, and networks.
  • Motivations include data theft, financial gain, espionage, sabotage, or political disruption.

Common Types of Cybercrime:

  • Hacking: Unauthorized access to systems or networks.
  • Phishing: Deceptive emails/websites used to steal sensitive information.
  • Malware attacks: Viruses, ransomware, and spyware used to damage or hijack systems.
  • Identity Theft: Misuse of personal data like Aadhaar or PAN for financial fraud.
  • Cyber Espionage: State or industrial surveillance via digital intrusion.
  • Cyberbullying: Online harassment, especially targeting children or women.

5. Impacts of Cybercrime

  • Threat to National Security:
  • Disruptions to critical infrastructure, data theft, and sabotage by hostile nations.
  • Data Breaches:
  • Exposure of financial data, personal details, or corporate trade secrets.
  • Operational Disruption:
  • Attacks on banking systems, telecom, or transport networks lead to service outages.
  • Reputational Damage:
  • Victim organisations lose customer trust and face regulatory penalties.

6. Government Initiatives Against Cybercrime

  1. Indian Cyber Crime Coordination Centre (I4C)
    • Nodal body coordinating cybercrime response among law enforcement agencies.
    • Develops training, forensic tools, and intelligence frameworks.
  1. Cyber Crime Prevention Against Women & Children (CCPWC) Scheme
    • Grants to states/UTs for establishing cyber forensic labs, training personnel, and appointing junior cyber consultants.
  1. National Cyber Crime Reporting Portal
    • Enables public reporting of cybercrimes.
    • Toll-free helpline 1930 and a Citizen Financial Cyber Fraud Reporting System provide real-time response to online financial fraud.
  1. CERT-In (Indian Computer Emergency Response Team)
    • Nodal technical agency under the Ministry of Electronics and IT.
    • Provides early warnings, technical support, and coordinates response to cybersecurity threats.
  1. National Critical Information Infrastructure Protection Centre (NCIIPC)
    • Tasked with protecting assets critical to national security, such as power grids, telecom, and financial systems.
  1. Cyber Swachhta Kendra
    • Botnet cleaning and malware analysis initiative for public awareness and malware detection tools.

7. International Conventions on Cybercrime

  • Budapest Convention on Cybercrime (Council of Europe)
  • First international treaty specifically addressing internet and computer crimes.
  • India is not a signatory, citing concerns over sovereignty.
  • Internet Governance Forum (IGF) – UN Platform
  • Facilitates multistakeholder dialogue on digital policies and global internet security.
  • Malabo Convention (African Union)
  • Focuses on cybersecurity, personal data protection, and promoting regional cooperation in Africa.

8. Significance of I4C–ED Information Sharing

  • Enhances Financial Intelligence:
  • Linking cybercrime complaints with financial transaction data from ED investigations.
  • Tracks Transnational Crime:
  • Identifies cross-border syndicates, crypto frauds, and hawala channels used in cyber laundering.
  • Improves Investigative Efficiency:
  • Prevents data silos between agencies, ensuring faster resolution of complex digital fraud cases.
  • Strengthens Legal Framework Enforcement:
  • Allows joint enforcement of IT laws and PMLA, tightening legal control over cyber and financial crimes.

Conclusion

  • The inclusion of I4C under PMLA and collaboration with the ED is a critical step in bridging cyber and financial enforcement in India.
  • As cybercrimes become more transnational and financially complex, integrated frameworks and real-time intelligence exchange between cyber and economic crime agencies are essential to safeguard national security and financial integrity.

 

Source: https://www.thehindu.com/news/national/govt-brings-cybercrime-centre-i4c-under-pmla/article69498751.ece