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2015 (8) TMI 1425 - AT - Money LaunderingProceedings under PMLA - non-reporting of integrally connected transactions cannot be condoned and the proceedings initiated cannot be dropped - Held that:- Admittedly the appellant has not filed Cash Transaction Report in respect of 31 integrally connected cash transactions which took place in the month of August, 2009 which was required to be filed in the month of September, 2009 as per sub-rule (1) of Rule 8. The appellant has also admitted that initially automated systems were not in place and upon implementation, data for past transactions was captured to view violations and consequently violations were voluntarily reported vide letter dated 11-3-2010. The appellant except pleading that details of transactions were communicated to respondent voluntarily, Suspicious Transaction Report was filed, appellant was in its initial phase of business commencement, remedial steps have been taken by appellant and IRDA has condoned the non-compliance, has not been able to show any infirmity or illegality in the impugned order. All these points were also pleaded by the appellant during proceedings before the respondent who had after due consideration of the same took a lenient view and imposed a nominal fine of ₹ 1,00,000/- for failing to have an internal mechanism in place for not reporting 31 integrally connected cash transactions in the month of August, 2009. The act of filing Suspicious Transaction Report (STR) will not absolve the appellant of its compliance liability of filing Cash Transaction Report (CTR).
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