Money laundering

This refers to the news on government tightening norms for reporting under the Prevention of Money Laundering Act (PMLA), which is a move in the right direction. But the reporting norms set by the government are already part of KYC guidelines which banks are expected to scrupulously adhere to. The challenge which financial institutions face relate to identification of beneficial ownership of business irrespective of the type of business structure. Bringing down the existing threshold limit of 15 per cent of capital or profits to 10 per cent will make little or no difference to prevent money laundering. It is essential on the part of reporting entities from financial or other institutions to understand the purpose and nature of their business while opening accounts. More efforts need to be devoted in monitoring their accounts for suspicious transactions.

Srinivasan Velamur

Chennai

Financing start-ups

With reference to ‘Role of banks in a knowledge economy’ (October 18), the crux of IP-based debt financing to start-ups lies primarily on the mindset of banks, to consider these internationally recognised rights as tangible assets. Earlier, bankers were reluctant even to fund IT companies due to lack of visibility on the tangible nature of the software. This trend reversed upon the companies becoming global. No doubt the underlying accurate valuation of intellectual property rights of the products so invented, the market penetration and operational efficiency of the borrowing entities play a significant role in considering them a prime or collateral asset for financing by lenders.

Sitaram Popuri

Bengaluru

Change election narrative

Several States and regions are going into election mode. It has now become a practice for parties and candidates to make many promises, mainly offering freebies if they get elected, and people vote on these lines. This must change. People must vote on the basis of work already done (or not done) by candidates/parties. If one finds potholed roads and broken footpaths, unreliable/unsafe drinking water, poor government healthcare facilities, etc., one knows who not to vote for. This approach could make elected representatives do good work while in power.

V Vijaykumar

Pune

Same-sex marriage

This refers to ‘SC declines to legalise same-sex marriage, says legislature to decide’ (October 18). Same-sex marriage or union, one feels, is by all means an abnormal behaviour and hence cannot be made legal. The Supreme Court has correctly refused it. But, surprisingly, it has shifted the onus of deciding it to Parliament. One hopes that the legislators of this great nation would not ape the countries which have recognised same-sex marriages.

S Ramakrishnasayee

Chennai

GM conundrum

This refers to ‘Why India needs GM Mustard’ (October 18). While the debate on GM crops has been in public domain for long, what’s perplexing is the frequent use of terms such as ‘biodiversity and ecology’, ‘false claims’ and ‘misconception’. Ecological issues, it is believed, would get resolved if GM crops are banned from Indian soil. As for bio-diversity, the eco-sensitive zones have been handled in a callous way for more than a decade. Research bodies must be roped in to manage these zones.

Rajiv Magal

Halekere Village, Karnataka

comment COMMENT NOW