Why it is in news?

• The Supreme Court will hear a petition challenging the government move to link bank accounts and mobile phones with Aadhaar numbers
• Petition argues that it violates the fundamental right to privacy and equates citizens, including the elderly, women and students, with money launderers. 

Whats the issue?

• The petition filed by activist has challenged Rule 2(b) of the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 for mandatory submission of Aadhaar number for individual clients, companies, partnership firms and trusts for opening of bank accounts, maintaining existing bank accounts, making financial transactions of and above ₹50,000 and crediting foreign remittance into ‘small accounts’.
• Existing bank account holders have been directed to furnish Aadhaar numbers by December 31, 2017.
• Non-compliance would render the bank accounts concerned “in-operational indefinitely” subject to submission of the Aadhaar Number and the Permanent Account Number (PAN).
• Non-compliance incurs the same liability as Section 5 of the Prevention of Money Laundering Act (for involvement in money laundering), that is rendering the concerned bank account in-operational. Present and potential bank account holders, who do not wish to part with their biometric information, are therefore treated on par with alleged offenders under the Prevention of Money Laundering Act (PMLA).