https://www.taxtmi.com/caselaws?id=792469 A bank cannot freeze a customer's current account merely on an alleged suspicious transaction or on the basis of a suspicious transaction report. Section 12 of the Prevention of Money Laundering Act, 2002 imposes record-keeping, confidentiality and reporting duties on a reporting entity, but does not authorise unilateral account freezing, and the RBI circular on suspicious transaction reporting likewise does not permit restrictions on account operations. Freezing is justified only when backed by lawful authority, such as action by an investigating agency or a valid lien. The Allahabad HC held the freeze illegal and unsustainable, and directed that the account be de-frozen so the customers could continue operating it. en-us Wed, 29 Apr 2026 00:00:00 +0530 Fri, 29 May 2026 08:59:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792469 A bank cannot freeze a customer's current account merely on an alleged suspicious transaction or on the basis of a suspicious transaction report. Section 12 of the Prevention of Money Laundering Act, 2002 imposes record-keeping, confidentiality and reporting duties on a reporting entity, but does not authorise unilateral account freezing, and the RBI circular on suspicious transaction reporting likewise does not permit restrictions on account operations. Freezing is justified only when backed by lawful authority, such as action by an investigating agency or a valid lien. The Allahabad HC held the freeze illegal and unsustainable, and directed that the account be de-frozen so the customers could continue operating it. Case-Laws Money Laundering Wed, 29 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792469