Keeping in view the recent amendment, examine the efficacy of the Prevention of Money Laundering Act, 2002, in tackling the menace of money laundering in India.

icking transactions] → [Integrating ex purchase of real estate]

With recent amendment in Prevention of Money Laundering Act, 2002 (PMLA), money laundering is tackled by →

① More teeth to Enforcement directorate to search, scope and seizure of money appropriated from money laundering (section 16, 17, 18)

(2) Arrest without warrant and investigation (section 50) process strengthened by amendment.

(3) Section 24 mandates the burden of proof lies on the accused, hence making it difficult for the criminals to prove innocence.

(4) Enforcement Case Information Report is not mandated to be made public or shown to the accused to reduce the scope of tampering.

(5) Proceeds of crime that has been used to buy other assets, shall be confiscated along with these assets making a strong deterrence.

Apart from the amendment in PMLA, additional mechanisms must be strengthened to reduce the menace of money laundering:

1. Finance Intelligence Unit and Economic Intelligence Unit for overall money + monitoring of economic transactions.

2. Institutional mechanisms like FICN- Coordination group to check counterfeiting enabled money laundering.

3. Organisations like CFT (combating for financing of terrorism), TFFC (Terror financing & Fake currency) to be strengthened.

4. International collaborations using FATF, BIMSTEC subgroup on money laundering, Asia-Pacific group etc.

5. Use of technology like AI/ML and block-chain to highlight the suspicious transaction.

6. Cryptocurrency & block chain based money laundering to be tackled by global collaborative efforts, pioneered by World Bank & IMF.