BNS Section 335 - Hawala and Unregulated Money Transfer

Whoever participates in, manages, or facilitates informal value transfer systems or unregulated remittances to transfer proceeds of crime or evade reporting obligations.

Share:
Non-bailable, Cognizable

Official Text

“Operating or using informal money transfer arrangements in contravention of law to move value domestically or cross-border outside regulated channels.”

Legal Analysis

Elements to Prove:

  • Participation in unregulated transfer system.
  • Circumvention of reporting/authorization.
  • Use linked to illicit value transfer.

Potential Defenses:

  • Use of regulated channels.
  • No illicit proceeds involved.
  • Compliance with reporting norms.

Practical Examples

What Constitutes the Offense:

Hawala settlements, parallel remittance networks, cash couriers replacing regulated channels.

What Doesn't Constitute:

Authorized money transfer services, regulated banking channels, declared remittances.

Punishment

Imprisonment up to 7 years, and Fine

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