https://www.taxtmi.com/caselaws?id=782168 HC held that while PMLA does not expressly authorize banks to freeze accounts solely on suspicion, Clause 59 of the relevant RBI circular permits temporary freezing as an "appropriate action" pending verification by law enforcement. Banks, as reporting entities, must conduct enhanced due diligence and monitor suspicious transactions, but any debit freeze can be continued only for a reasonable period, fixed at three months. If no law enforcement action is initiated within that period, the bank must lift the freeze. The respondent bank was directed to notify specified authorities of the account freezing within two working days and to follow the court's guidelines. Petition disposed. en-us Wed, 19 Nov 2025 00:00:00 +0530 Wed, 26 Nov 2025 21:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782168 HC held that while PMLA does not expressly authorize banks to freeze accounts solely on suspicion, Clause 59 of the relevant RBI circular permits temporary freezing as an "appropriate action" pending verification by law enforcement. Banks, as reporting entities, must conduct enhanced due diligence and monitor suspicious transactions, but any debit freeze can be continued only for a reasonable period, fixed at three months. If no law enforcement action is initiated within that period, the bank must lift the freeze. The respondent bank was directed to notify specified authorities of the account freezing within two working days and to follow the court's guidelines. Petition disposed. Case-Laws Money Laundering Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782168