• UGI USER
  • Jul 30, 2024
  • 6 Likes
  • 0 Comments

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/