Prevention of Money Laundering Act (PMLA)

A report submitted by the Finance Minister in the Rajya Sabha reveals that the Enforcement Directorate (ED) has taken up 5,892 cases under the Prevention of Money Laundering Act (PMLA), 2002, since 2015. However, special courts have ordered only 15 convictions in these cases.

Key Details of PMLA and its Implementation

• Objective: PMLA was enacted in line with the UN Political Declaration and Global Programme of Action to prevent money laundering and confiscate property involved in the crime.
• Definition of Money Laundering (Section 3): The act defines money laundering as concealing, possessing, acquiring, or using the proceeds of crime and projecting them as untainted property.
• Burden of Proof: A key feature of the PMLA is that the burden of proof is on the accused, making it a stringent law.
• Initiation of Proceedings: An Enforcement Case Information Report (ECIR) is sufficient to initiate proceedings. The Supreme Court affirmed this in Vir Bhadra Singh vs. ED (2017), stating that an FIR is not required. The only prerequisite is that a scheduled offense (an offense against the state) must have occurred.
• Supreme Court’s View: In P. Chidambaram vs. Enforcement Directorate (2019), the Supreme Court highlighted that hiding the illegal source of money affects not only the financial system but also the sovereignty and integrity of the nation.

(Source: TH)