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.

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.

Prevention of Money Laundering Act (PMLA) FAQs

Q1. What is the objective of the Prevention of Money Laundering Act (PMLA)?
Ans. PMLA, 2002 aims to prevent money laundering and confiscate properties derived from laundered money.

Q2. Which agency enforces PMLA in India?
Ans. The Enforcement Directorate (ED) is the key agency responsible for investigating offences under PMLA.

Q3. What is a scheduled offence under PMLA?
Ans. A scheduled offence is a predicate offence listed in the schedule of the Act, and it must be proved before prosecuting money laundering.

Source: TH