• UGI USER
  • Jul 30, 2024
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MUMBAI COURT’S RULING HIGHLIGHTS PMLA PROCEDURAL ISSUES

Why in the news?

The Mumbai court’s decision highlights the significance of procedural safeguards under PMLA, challenging the Enforcement Directorate’s arrest procedures.

source:toi

About Directorate of Enforcement (ED):

  • Function: Investigates money laundering and foreign exchange law violations under the Department of Revenue, Ministry of Finance.
  • Structure: Headquartered in New Delhi; led by Director, with regional offices and zonal offices across India.
  • Recruitment: Officers from IRS, IPS, IAS.
  • Tenure: Up to five-year extension for directors, subject to High-Level Committee recommendations. SC upheld tenure amendments but invalidated illegal extensions.
About Prevention of Money Laundering Act (PMLA), 2002:

  • Purpose: Prevents money laundering, confiscates property derived from illegal activities like drug trafficking and terrorism financing.
  • Key Provisions: Defines offences, imposes penalties, allows property attachment, mandates reporting by financial institutions.
  • Objectives: Prevention, detection, confiscation, and international cooperation.
  • Recent Amendments: Redefined money laundering as a stand-alone crime; expanded scope of proceeds of crime.

Associated Article:

https://universalinstitutions.com/supreme-court-clarifies-pmla-accused-rights/