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Mahesh

26/08/22 15:50 PM IST

Supreme Court set to review PMLA verdict, reconsider two provisions

In News 
  • The Supreme Court  agreed to consider a plea seeking a review of its earlier judgment upholding the constitutional validity of anti-money laundering provisions, including the powers of arrest and seizure.
  • The court said it would re-examine two provisions of the Prevention of Money Laundering Act (PMLA), one with respect to providing a copy of the Enforcement Case Information Report (ECIR) to the accused and another related to the burden of proof on the accused regarding innocence.
PMLA Act 
  • PMLA was enacted in 2002 and it came into force in 2005 as a response to India’s global commitment (including the Vienna Convention) to:
  • Curb the menace of money laundering (the process of converting black money into white)
  • To provide for confiscation and seizure of property derived from money laundering.
  • To deal with any other issue connected with money laundering in India.
PMLA (Amendment) Act, 2012
  • Adds the concept of ‘reporting entity’ which would include a banking company, financial institution, intermediary etc.
  • PMLA, 2002 levied a fine up to Rs 5 lakh, but the amendment act has removed this upper limit.
  • It has provided for provisional attachment and confiscation of property of any person involved in such activities.
PMLA (Amendment) Act, 2019
  • It provided extensive power to ED for summons, arrests and raids, and makes bail provisions difficult while shifting the burden of proof of innocence onto the accused rather than prosecution. 
  • Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement, etc.
ECIR 
  • The ECIR is a case-record document of the Enforcement Directorate (ED) and it comprised prime facie charges against the accused. The ED is the federal agency given the powers to investigate money laundering under the PMLA.
  • Another provision under review is Section 24 of the PMLA, dealing with the burden of proof. It states when a person is accused of having committed the offence under Section 3 (offence of money laundering), the burden of proving innocence shall be on the accused.
Source- Indian Express

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