• UGI USER
  • Jul 09, 2024
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“ED APPEALS SUPREME COURT AGAINST JHARKHAND CM’S BAIL”

Why in the news?

  • The Enforcement Directorate (ED) appealed to the Supreme Court against the Jharkhand High Court’s decision to grant bail to Chief Minister Hemant Soren.
  • The bail is related to money laundering charges connected to a land scam.
Source:scribd

About Prevention of Money Laundering Act (PMLA), 2002:

  • Prevents money laundering and confiscates involved property.
  • Penalises money laundering offenders with imprisonment (3-7 years) and fines.
  • Enforcement Directorate investigates; FIU-IND processes financial transactions.
  • Obligates banks and institutions to verify clients and maintain records.
What is Money laundering ?

  • Money laundering involves concealing, using, or projecting proceeds of crime as legal funds.
  • It transforms illegal funds (black money) into seemingly legitimate assets (white money).
  • The Prevention of Money Laundering Act (PMLA) defines and addresses such activities to combat financial crimes.

About Enforcement Directorate (ED):

  • Established: in 1956 as an ‘Enforcement Unit’ under the Department of Economic Affairs.
  • Renamed ‘Enforcement Directorate’ in 1957.
  • Operates under the Ministry of Finance’s Department of Revenue.
  • Mandated to investigate money laundering and foreign exchange law violations.
  • Enforces PMLA, FEMA, and FEOA.

Associated Article:

https://universalinstitutions.com/questionable-searches-under-the-money-laundering-act/