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Changes in PMLA Act empower ED
Why is it in news?
- Changes to Prevention of Money Laundering Act (PMLA) have been issued by the center.
- The changesare made to distinguish proceedings under the Act different from those under the scheduled offenses.
More in news
- What are the changes proposed
(1) Treating money laundering as a stand-alone crime.
(2) Expanding the ambit of proceeds of crimeto assets derived from any other criminal activity related to scheduled offenses.
(3) No requirement of filing FIR or Charge sheet by other agencies authorized to probe the offenses listed in the PMLA schedule.
(4) All PMLA offences will be cognisable and non-bailableempowering Enforcement Directorate (ED) to arrest an accused without warrant
(5) Changes to the explanationin Section 44: The jurisdiction of the Special Court, while dealing with the offence under this Act, during investigation, enquiry or trial under this Act, shall not be dependent upon any orders passed in respect of the scheduled offence, and the trial of both sets of offences by the same court shall not be construed as joint trial.
Prevention of Money Laundering Act, 2002
- The Act was enacted to fight against the criminal offence of legalizing the income/profits from an illegal source.
- It enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds.
- What does the Act envisages to achieve:
(1) Prevent money-laundering.
(2) Combat/prevent channelising of money into illegal activities and economic crimes.
(3) Provide for the confiscation of property derived from, or involved/used in, money-laundering.
(4) Provide for matters connected and incidental to the acts of money laundering.
Source
The Hindu