What is the maximum fine that the Director can impose on

Solution

Section 13(2) of PMLA empowers the Director to levy a fine on a banking company, financial institution, or intermediary (or any of its officers) for failure to comply with Section 12 provisions. The fine shall not be less than ten thousand rupees but may extend to one lakh rupees for each failure. This means both the minimum (Rs. 10,000) and maximum (Rs. 1,00,000) are prescribed by statute. The Director can suo motu or on application of any authority call for records under Section 13(1). This provision ensures compliance by regulated entities with KYC and transaction monitoring obligations. The Director must forward a copy of the order to every party under Section 13(3).