Prevention of Money Laundering Act

Prevention of Money Laundering Act (PMLA) Latest News

The Enforcement Directorate (ED) has significantly intensified actions under the PMLA since 2014, reflecting a heightened institutional response to economic offences in India.

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

• The Prevention of Money Laundering Act (PMLA), 2002 was enacted in January 2003 to combat money laundering and confiscate proceeds of crime.
• Section 3 defines money laundering as any attempt to project criminal proceeds as untainted assets.
• The main objectives of the Act are:
  • To prevent and control money laundering,
  • To attach and confiscate assets derived from crime,
  • To address related economic offences in India.
• PMLA has undergone major amendments in 2009 and 2012 to expand its scope and enforcement powers.
• As of 2024-25, the ED has initiated 775 new investigations under the PMLA and filed 333 prosecution complaints, demonstrating increased legal action against money laundering.

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Enforcement Directorate (ED) Role

• ED is the chief enforcement agency under PMLA, empowered to investigate, attach property, and file prosecution complaints.
• The Act mandates record maintenance and client identity verification by banks, financial institutions, and intermediaries.
• Key institutions include:
  • Adjudicating Authority (for attachment confirmation),
  • Appellate Tribunal, and
  • Special Courts (designated sessions courts for PMLA trials).
• The Act allows international cooperation through treaties and MoUs with foreign governments.

Focus Areas for 2025

• Foreign Exchange Management Act (FEMA) cases are a key enforcement priority this year.
• Under the Fugitive Economic Offenders Act, 2018, applications were filed against 24 individuals, and 14 have been declared fugitive economic offenders.
  • Over ₹900 crore worth of assets have been confiscated so far.

Source: TH