The show cause notice to Yasin Malik and a Srinagar-based couple was issued recently by the central probe agency under provisions of the Foreign Exchange Management Act, they said.
The case relates to a 2001 First Information Report or FIR from the Jammu and Kashmir police, which seized $1,00,000 (about Rs 48.23 lakh according to conversion rates at the time) from Srinagar-based Mushtaq Ahmad Dar and his wife Shamima who also goes by the names Shazia and Bitti.
Mushtaq Dar reportedly told the police that the money was given to him by a person in Nepal to be handed to Yasin Malik.
Yasin Malik was arrested in the case but was later let off on bail.
The FEMA notice has been issued after investigators completed their over a decade-long investigation, officials said.
The agency has asked Yasin Malik and the two others to reply to the notice in the next 30 days after which civil adjudication proceedings will begin against them.
Yasin Malik was also summoned by the Enforcement Directorate in the case but never appeared before them.