To check cyber fraud, banks want power to freeze ‘mule’ accounts

To check cyber fraud through ‘mule’ accounts, banks are seeking authority to freeze accounts involved in channelling illicit transactions without wasting precious time in seeking permission from authorities.

Banks freeze/block accounts based on internal triggers, however, as per the Prevention of Money Laundering Act (PMLA), they do not have the authority to freeze or block customer accounts without proper authorisation from a court or law enforcement agencies.