Money laundering shifts to new hotspots; 8.5 lakh bank accounts frozen
Money laundering using "mule accounts"—bank accounts opened with fake details to move illegal money—is no longer just a small-town scam.
Banks have recently frozen about 8.5 lakh of these shady accounts in places like Katni, Shajapur, Kalaburagi, and parts of Assam, not just the usual hotspots like Jamtara or Nuh.
These accounts help criminals quickly move cash from cybercrimes or digital extortion into other banks, revealing serious gaps in how banks onboard customers.
How tech and loopholes are making things tricky
The RBI's Mule Hunter is now catching around 20,000 mule accounts every month.
But here's the catch: India's anti-money laundering law (PMLA) stops banks from freezing suspicious accounts without a court order—giving scammers enough time to slip their money away before anyone can act.
The latest findings have officials calling for urgent updates to close this loophole and make anti-money laundering rules actually work.