Question 1

What triggers an investigation under the Prevention of Money Laundering Act (PMLA)?

Accepted Answer

A PMLA investigation requires a 'Scheduled Offense' (predicate offense) as listed in the Act, such as fraud, corruption, or drug trafficking. The ED investigates the generation of 'proceeds of crime' from this scheduled offense and its subsequent laundering.

Question 2

What are the provisions for the attachment of property under PMLA?

Accepted Answer

Under Section 5 of PMLA, the ED can provisionally attach property believed to be derived from proceeds of crime. This attachment must be confirmed by the Adjudicating Authority within 180 days, during which the accused can present their defense.

Question 3

Why is obtaining bail under PMLA considered difficult?

Accepted Answer

Section 45 of the PMLA imposes twin conditions for bail: the court must be satisfied there are reasonable grounds for believing the accused is not guilty, and that they will not commit any offense while on bail. This stringent requirement places a heavy burden on the defense.

Money Laundering PMLA & EOW

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