SC upholds powers of arrest, raid under PMLA
- Prevention of Money Laundering Act was enacted in 2002 to enforce global commitments (including Vienna convention) rather than due to domestic demands.
- The provisions of this act are applicable to all financial institutions, banks (Including RBI), mutual funds, insurance companies, and their financial intermediaries.
Other laws related to money laundering:
- Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act).
- The Benami Transactions (Prohibition) Act, 1988.
About Enforcement Directorate (ED):
- Established in 1956 under the Foreign Exchange Regulation Act,1947 as a part of the Department of Economic Affairs.
- It was renamed as Enforcement Directorate in 1957 and became a part of Department of Revenue in 1960.
- Currently ED manages crimes related to Foreign Exchange Management Act, 1999 (FEMA) and the Prevention of Money Laundering Act, 2002 (PMLA).
- Enforcement Case Information Report (ECIR) is not an FIR and hence is not necessary to give one in every case.
Source The Hindu