The Prevention of Money Laundering Act (PMLA), 2002, is a crucial law aimed at combating money laundering in India. It defines and punishes the offense of money laundering, along with laying out procedures for the attachment and confiscation of property connected to proceeds of crime.
Key Provisions of the PMLA
Section 3: Offense of Money Laundering
- Definition:
Money laundering is defined as any direct or indirect attempt to involve oneself in processes or activities related to proceeds of crime, including concealment, acquisition, use, or claiming these as untainted property.
Section 4: Punishment for Money Laundering
- Imprisonment:
Punishable with rigorous imprisonment for 3 to 7 years, which may extend to 10 years for certain high-profile crimes.
- Fine:
Fines may be imposed, up to 5 lakh rupees or more for larger offenses.
Attachment of Property Under PMLA
- Section 5:
The Enforcement Directorate (ED) can provisionally attach property linked to the proceeds of crime.
- Section 8:
The Adjudicating Authority confirms or rejects the attachment of such properties.
- Section 9:
The property can be confiscated by the government once the attachment is confirmed.
Definition of “Proceeds of Crime” (Section 2(i)(u))
- Proceeds of Crime means:
- Property derived directly or indirectly from criminal activity.The value of such property.
- If the property is held abroad, any equivalent value held within India.
Enforcement Directorate (ED)
- Role:
The ED is the primary agency responsible for investigating and prosecuting money laundering cases under PMLA.
- It operates in 10 zonal offices across major cities in India, including Mumbai, Delhi, Chennai, and others.
- The ED also investigates violations of the Foreign Exchange Management Act (FEMA) and engages in preventive measures against foreign exchange violations.
Adjudicating Authority and Appellate Tribunal
- Adjudicating Authority:
This body confirms the attachment of properties and makes determinations on whether the assets are proceeds of crime.
- Appellate Tribunal (Section 25):
It allows appeals against the decisions made by the Adjudicating Authority.
Our Expertise in PMLA and ED Cases
Our law firm specializes in defending clients involved in high-profile money laundering and ED cases. With extensive experience in representing politicians and business figures in CBI, ED, and EOW cases, we offer the following:
- Defensive Strategies for money laundering charges.
- Expert Guidance on the attachment and confiscation of properties.
- Proven Track Record in PMLA defense and criminal trials related to money laundering.
Our lawyers are recognized as some of the best criminal lawyers in Mumbai/India, skilled in handling ED, PMLA, and other money laundering cases.
If you’re facing charges under PMLA or involved in an ED investigation, let our experienced team guide you through the legal complexities!