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Prevention of Money Laundering Act (PMLA) 2002

  • IASbaba
  • December 3, 2022
  • 0
Economics
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In News: The Finance Ministry notified changes to the Prevention of Money Laundering Act (PMLA), 2002

Changes to PMLA 2002:

  • Allowed Enforcement Directorate (ED) to share incriminating information and material  about economic offenders with 15 more agencies.
  • These include
  • National Investigation Agency (NIA)
  • Serious Fraud Investigation Office (SFIO)
  • Directorate General of Foreign Trade (DGFT)
  • Competition Commission of India (CCI)
  • National Intelligence Grid
  • Central Vigilance Commission (CVC)
  • Wildlife Crime Control Bureau
  • MEA, State Police Department, regulators under various Acts, Defence Intelligence Agency, National Technical Research Organisation, Military Intelligence, inquiry authority under Central Civil Services Rules.
  • Earlier, the ED was permitted to share data with only 10 agencies, including CBI, RBI, Sebi, IRDAI, Intelligence Bureau, and Financial Intelligence Unit (FIU), among others.
  • Aim:
  • Integrate numerous State and Central government agencies
  • Empowering them with verified information related to an outlaw
  • Expedite nabbing of law-breakers
  • Apprehend social evils and bring them to justice in the court of law

Prevention of Money Laundering Act(PMLA):

  • It is a criminal law of the Parliament of India passed by the NDA government in 2002
  • PMLA became law and came into force on July 1, 2005.
  • It has blanket powers assigned to the Enforcement Directorate (ED) under PMLA for seizing, investing, searching and attaching assets.
  • Introduced due to India’s commitment at the Vienna Convention to combat money laundering.

Aim:

  • Prevention and controlling money laundering
  • Confiscation and seizing of property involved in or derived from money laundering.
  • Providing punishment to offenders
  • Appointment of adjudicating authority and appellate tribunal concerning money laundering matters
  •  Dealing with every issue related to money laundering

MUST READ ED

Source: Indian Express

 

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